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Full text of "Legislation on foreign relations with explanatory notes"

94th 
2d 



Congress 1 
Session / 



JOINT 



LEGISLATION ON F 



LATIONS 



WITH EXPLANATORY NOTES 



COMMITTEE ON INTERNATIONAL 
RELATIONS 
U.S. HOUSE OF REPRESENTATIVES 

COMMITTEE ON FOREIGN RELATIONS 
UNITED STATES SENATE 



Printed for the use of the Committees on International Relations and Foreign 
Relations of the House of RepresentatiTes and the Senate respectively 




APRIL 1976 



94th 
2d 



Congress 1 
Session / 



JOINT COMMITTEE PRINT 



LEGISLATION ON FOREIGN RELATIONS 

WITH EXPLANATORY NOTES 



COMMITTEE ON INTERNATIONAL 
RELATIONS 
U.S. HOUSE OF REPRESENTATIVES 

COMMITTEE ON FOREIGN RELATIONS 
UNITED STATES SENATE 



Printed for the use of the Committees on International Relations and Foreign 

Relations of the House of Representatives and the Senate respectively 




APRIL 1976 



U.S. GOVERNMENT PRINTING OFFICE 



65-998 O 



WASHINGTON 



1976 



For sale by the Superintendent of Documents, T'.S. Government Printing Office 
Washington, D.C. 20402 - Price $17. 



COMMITTEE ON INTERNATIONAL RELATIONS 



THOMAS E. MORGA] 
CLEMENT J. ZABLOCKI, Wisconsin 
WAYNE L. HATS, Ohio 
L. H. FOUNTAIN, North Carolina 
DANTE B. FASCELL, Florida 
CHARLES C. DIGGS, Jr., Michigan 
ROBERT N. C. NIX, Pennsylvania 
DONALD M. ERASER. Minnesota 
BENJAMIN S. ROSENTHAL, New York 
LEE H. HAMILTON, Indiana 
LESTER L. WOLFF, New York 
JONATHAN B. BINGHAM, New York 
GUS YATRON, Pennsylvania 
ROY A. TAYLOR, North Carolina 
MICHAEL HARRINGTON, Massachusetts 
LEO J. RYAN, California 
DONALD W. RIEGLE, Jr., Michigan 
CARDISS COLLINS, Illinois 
STEPHEN J. SOLARZ, New York 
HELEN S. MEYNER, New Jersey 
DON BONKER, Washington 
GERRY E. STUDDS. Massachusetts 



', Pennsylvania, Chairman 
WILLIAM S. BROOMFIELD, Michigan 
EDWARD J. DERWINSKI, Illinois 
PAUL FINDLEY, Illinois 
JOHN H. BUCHANAN, Jr., Alabama 
J. HERBERT BURKE, Florida 
PIERRE S. DO PONT, Delaware 
CHARLES W. WHALEN, Jr., Ohio 
EDWARD G. BIESTER, Jr., Pennsylvania 
LARRY WINN, Jr., Kansas 
BENJAMIN A. OILMAN, New York 
TENNYSON GUYER, Ohio 
ROBERT J. LAGOMARSINO, California 



Marian A. Czarnbcki, Chief of Staff 



COMMITTEE ON FOREIGN RELATIONS 



JOHN SPARKMAN, Alabama, Chairman 



MIKE MANSFIELD, Montana 
FRANK CHURCH, Idaho 
STUART SYMINGTON, Missouri 
CLAIBORNE PELL, Rhode Island 
GALE W. McGEE, Wyoming 
GEORGE McGOVERN, South Dakota 
HUBERT H. HUMPHREY, Minnesota 
DICK CLARK, Iowa 
JOSEPH R. BIDEN, JE., Delaware 

Pat M. 



CLIFFORD P. CASE, New Jersey 
JACOB K. JAVITS, New York 
HUGH SCOTT, Pennsylvania 
JAMES B. PEARSON, Kansas 
CHARLES H. PERCY, Illinois 
ROBERT P. GRIFFIN, Michigan 



Holt, Chief of Staff 



FOREWORD 



This collection of laws and related material contains texts referred 
to by the Committees on International Eelations of the House of Rep- 
resentatives and Foreign Relations of the Senate, amended to date 
and annotated to show pertinent history or cross references. Xo as- 
sumption as to the importance or significance of any of the materials 
is to be made because of inclusion or treatment herein. 

This year the compilation was prepared under the direction of 
James T. Schollaert of the Committee on International Relations with 
the assistance of Walter Albano of the American Law Division, Ellen 
C. Collier and Larry Xowels of the Foreign Affairs Division of the 
Congressional Research Service of the Library of Congress, and Susan 
Hall. Office of the General Counsel, Agency for International Devel- 
opment. 

Thomas E. Morgax. 
Chairman^ Committee on International Relations. 

Joiix Sparkmax, 
Chairman^ Committee on Foreign Relations. 



(HI) 



Digitized by tlie Internet Archive 
in 2013 



http://archive.org/details/leginonforOOunit 



EXPLANATORY NOTE 



All public laws included in this volume, except as noted below, are 
codified and in force through the end of the first session of the 94th 
Congress. The texts of the public laws in this volume are printed as 
they appear in the United States Statutes at Large rather than the 
United States Code. Amendments are incorporated into the text and 
distinguished by a footnote. The following public laws or sections 
thereof remain in the volume although they have been repealed or, in 
the case of section 6 of the Internal Security Act of 1950, held 
unconstitutional : 

1. Tonkin Gulf Resolution (page 270) 

2. Section 6 of the Internal Security Act of 1950 (page 525) 
8. Formosa Resolution (p. 1192) 

All treaties included in this volume, except as noted below, are 
currently in force. The lists of signatories to these treaties are updated 
through January 1, 1976. The texts of the treaties have been codified, 
with footnoting, to show them in amended form. Treaties included in 
the volume but not presently in force for the United States are the 
Convention Relating to the Status of Refugees on page 586 and the 
Treaty for the Prohibition of Nuclear Weapons in Latin America 
with Additional Protocol on page 1348. 

All Executive orders. State Department regulations, and State 
Department delegations of authority are codified and in force as of 
January 1, 1976. 

(V) 



ABBREVIATIONS 



Bevans Treaties and Other International Agree- 

ments of the United States of America, 
1776-1949, compiled under the direc- 
tion of Charles I. Bevans. 

CFR Code of Federal Regulations. 

EAS Executive Agreement Series. 

F.R. Federal Register. 

LNTS League of Nations Treaty Series. 

I Malloy, II Malloy Treaties, Conventions, International 

Acts, Protocols, and Agreements Be- 
tween the United States of America 
and Other Powers, 1776-1909, compiled 
under the direction of the United 
States Senate by William M. Malloy. 

Stat United States Statutes at Large. 

TIAS Treaties and Other International Acts 

Series. 

TS Treaty Series. 

UNTS United Nations Treaty Series. 

U.S.C. United States Code. 

UST United States Treaties and Other Inter- 

national Agreements. 

(VI) 



CONTENTS 



Page 

FOREWORD III 

EXPLANATORY NOTE v 

ABBREVIATIONS vi 

A. FOREIGN ASSISTANCE 1 

1. Foreign Assistance Acts 5 

a. The Foreign Assistance Act of 1961, as Amended 5 

b. International Development and Food Assistance Act of 1975 

(partial text) 147 

Report Regarding Implementation of Recommendations of 

World Food Conference 147 

International Organizations and Programs 147 

Limitation on Assistance to Chile 147 

Settlement of Debt Owed the United States 148 

Participation by Other Countries in Providing Assistance 

to Israel or Egypt 148 

c. Foreign Assistance Act of 1974 (partial text) 149 

Ceiling on Fertilizers to South Vietnam 149 

Review of Military Assistance Program 149 

Limitation Upon Assistance to or for Chile 150 

Limitation on Military Assistance and Excess Defense 

Articles to Korea 150 

Limitation on Assistance for India 150 

Famine or Disaster Relief 150 

Policy With Respect to Indochina 151 

Principles Governing Economic Aid to Indochina 152 

Indochina Postwar Reconstruction 152 

Assistance to South Vietnamese Children 153 

Limitations With Respect to South Vietnam 154 

Limitations With Respect to Cambodia 156 

Limitations With Respect to Laos 156 

Nuclear Powerplants 158 

Gorgas Memorial Institute 158 

International Commission of Control and Supervision in 

Vietnam 158 

Policy on Assistance to Africa 158 

Policy on the Independence of Angola, Mozambique, and 

Guinea-Bissau 159 

Conventional Arms Trade 160 

Involvement of Puerto Rico in the Caribbean Development 

Bank 160 

Policy With Respect to Countries Most Seriously Affected 

by Food Shortages 160 

Repayment of Loans in Default 161 

d. Foreign Assistance Act of 1973 (partial text) 163 

Asian Development Bank Authorization 163 

Termination of Indochina War 163 

Limitation on Use of Funds for Indochina 163 

Political Prisoners 164 

Albert Schweitzer Hospital Authorization 164 

POW's and MIA's 164 

Rights in Chile 165 

Revision of Social Progress Trust Fund Agreement 165 

Prohibition of Assistance to North Vietnam 166 

Report Concerning Use of Military Assistance in Africa. __ 166 

World Food Shortages 166 

Use of Local Currencies 167 

(VII) 



VIII 

A. Foreign Assistance — Continued 

1. Foreign Assistance Acts — Continued Page 

e. Foreign Assistance Act of 1971 (partial text) 168 

Food for Peace Reduction 168 

Position of Under Secretary of State for Coordinating 

Security Assistance 168 

Periodic Authorizations for State and USX A 169 

Limitation on United Nations Assessment of United 

States 169 

f. Special Foreign Assistance Act of 1971, as amended (partial 

text) 170 

Authorization of Appropriations 170 

Transfer of Defense Articles to Korea 170 

Authorization of Local Currencies for Pakistan 171 

Limitation on Assistance to Cambodia 171 

g. Foreign Assistance Act of 1969, as amended (partial text) 172 

Part IV — The Inter-American Foundation Act 172 

Part V — Amendments to Other Acts 176 

h. Foreign Assistance Act of 1968 (partial text) 179 

i. Foreign Assistance Act of 1967 179 

j. Foreign Assistance Act of 1966 179 

k. Foreign Assistance Act of 1965 179 

1. Foreign Assistance Act of 1964 (partial text) 180 

Religious Persecution 180 

m. Foreign Assistance Act of 1963 180 

n. Foreign Assistance Act of 1962 181 

2. Foreign Assistance Appropriations 182 

a. Joint Resolution [Temporary Appropriations for Fiscal Year 

1976], as amended (Public Law 94-41) (partial text) 182 

b. Joint Resolution [Temporary Appropriations for Fiscal Year 

1976] (Pubhc Law 94-159) 1 186 

c. Joint Resolution [Temporary Appropriations for Fiscal Year 

1975], as amended (Public Law 94-324) (partial text) 187 

d. Joint Resolution [Temporary Appropriations for Fiscal Year 

1975] (Pubhc Law 93-448) ^(partial text) 191 

e. Foreign Assistance and Related Programs Appropriation Act, 

1975 192 

f. Supplemental Appropriation Act, 1955, as amended (partial 

text— Sec. 1311, Valid Obligations) 204 

3. Other Foreign Assistance Related Legislation 206 

a. Latin American Development Act, as amended (Public Law 

86-735) 206 

[The Inter- American Foundation Act is on page 172.] 

b. Mutual Security Act of 1959, as amended (Public Law 86-108) 

(partial text) 209 

c. Mutual Security Act of 1954, as amended (retained provisions)- 210 

Sec. 402 — Earmarking of Funds 210 

Sec. 408 — North Atlantic Treaty Organization 210 

Sec. 414 — Munitions Control 211 

Sec. 417— Irish Counterpart 212 

Sec. 502 — Use of Foreign Currency 212 

Sec. 514 — International Educational Exchange Activities- 214 

Sec. 523 — Coordination With Foreign Pohcy 214 

Sec. 536 — Joint Commission on Rural Reconstruction in 

China 214 

d. Mutual Defense Assistance Control Act of 1951, as amended 

(Battle Act) 215 

e. Use of Foreign Currencies: 

(1) Supplemental Appropriation Act, 1953 (Section 1415, 

Availability Foreign Credits) 219 

(2) General Government Matters Appropriation Act, 1962 

(Public Law 87-125) (partial text— Sec. 508, Provi- 
sion for Use of Foreign Credits by Federal Agencies)- 220 

(3) Use of Reserved Foreign Currencies (Public Law 

89-677) 221 

f. Amendment to Merchant Marine Act of 1936, as amended (50 

percent of shipment on U.S. -flag vessels) 222 

g. ' The Sugar Act of 1948, as amended (partial text — Sec. 408(c), 

Provisions for Withholding Sugar Quota) 224 

h. Fishermen's Protective Act of 1967, as amended (note) 225 



IX 



A. Foreign Assistance — Continued 

3. Other Foreign Assis-tance Related Legislation — Continued Page 

i. Emergency Security Assistance Act of 1973 226 

j. Foreign Disaster Assistance Act of 1974 (partial text) (Public 

Law 93-333) 228 

[Indochina Migration and Refugee assistance legislation is 
at pages 604-605.] 
k. Amendments to the Board for International Broadcasting Act 

of 1973 (partial text) (PubHc Law 94-104) 229 

4. Executive Orders and Delegations of Authority Relating to Foreign 

Assistance ^ 232 

a. Executive Order 10973, as amended (Administration of Foreign 

Assistance and Related Functions) 232 

b. State Department Delegation of Authority No. 104, as amended. 240 

c. Executive Order 11223 (Performance of Functions Authorized 

by the Foreign Assistance Act of 1961, as amended) 248 

d. Executive Order 11579 (Overseas Private Investment Corpora- 

tion) 250 

5. Foreign Mihtary Sales 253 

a. The Foreign Military Sales Act, as amended (Public Law 90- 

629) 253 

b. Foreign Military Sales Act Amendments, 1971, as amended 

(PubUc Law 91-672) (partial text) 267 

Sec. 5 — Sense of Congress Concerning Arms for Israel 267 

Sec. 6 — Sense of Congress for Review of Military Aid 

Programs and Discussion on Control of Armaments and 

Arms Trade 267 

Sec. 7 — Sale or Transfer of International Fighter Aircraft. _ 268 
Sec. 8 — Grants of Excess Defense Articles Charged Against 

Appropriated Funds 268 

Sec. 10— Authorization Required Prior to Obligation or 

Expenditure of Funds 270 

Sec. 11 — Definitions of Defense Article, Excess Defense 

Articles, and Foreign Country 270 

Sec. 12— Repeal of Tonkin Gulf Resolution 270 

Sec. 13 — Detoxification of Chemical Munitions in Okinawa. 270 

c. Executive Order 11501, as amended (Administration of Foreign 

Military Sales) 271 

6. Armed Forces Authorizations and Appropriations 273 

a. Department of Defense Appropriation Authorization Act, 1976 

(PubHc Law 94-106) (partial text) 273 

b. Department of Defense Appropriation Authorization Act, 1975 

(Public Law 93-365) (partial text) 275 

c. Armed Forces Appropriation Authorization, 1971 (Public Law 

91-441) (partial text) 279 

d. ^Military Construction Appropriation Act, 1976 (Public Law 

94-138) (partial text) 280 

7. Laws Relating to Loan or Sale of Vessels to Foreign Countries (Public 

Law 84-1028) (partial text) 281 

B. AGRICULTURAL COMMODITIES 283 

1. Agricultural Trade Development and Assistance 285 

a. Agricultural Trade Development and Assistance Act of 1954, 

as amended (Public Law 480) 286 

b. Extension of Agricultural Trade Development and Assistance 

Act of 1954, as amended (partial text) 310 

c. Agricultural Trade Development and Assistance Act Appro- 

priations, 1975 (PubHc Law 93-563) (partial text) 312 

d. Agriculture and Related Agencies Appropriation Act, 1976 

(Public Law 94-122) (partial text. Title IV— International 
Programs) 313 

e. Executive Order 10900, as amended (Administration of the 

Agricultural Trade Development and Assistance Act of 1954, 

as amended) 315 

2. Food for Peace Program 320 

a. Food for Peace Act of 1966 (Public Law 89-808) (partial text) . 320 

b. Memorandum by the President Describing the Role of the 

Director, Food for Peace Program 321 

c. Executive Order 11252 (Food for Peace Program) 324 



X 



Page 



C. THE PEACE CORPS 325 

1. The Peace Corps Act, as amended 327 

2. Independent Implementing Provisions of Public Law 89-134 347 

3. Domestic Volunteer Service Act of 1973 (Public Law 93-113) (partial 

text) 348 

4. Executive Order 11603 (Assigning Additional Functions to the Director 

of ACTION) 349 

5. Executive Order 11103 (Providing for the Appointment of Former 

Peace Corps Volunteers to the Civilian Career Services) 350 

D. DEPARTMENT OF STATE 355 

1. Scope of Responsibilities and Authority 359 

a. Foreign Relations Authorization Act, Fiscal Year 1976 (Public 

Law 94-141) (partial text) 359 

b. State Department/USIA Authorization Act, Fiscal Year 1975 

(Public Law 93-475) (partial text) 364 

c. Department of State Appropriations Authorization Act of 1973, 

as amended (Public Law 93-126) (partial text) 366 

d. Foreign Relations Authorization Act of 1972, as amended 

(Public Law 92-352) (partial text) 369 

e. Department of State Appropriations, 1976 (Public Law 94-121 

(partial text) 373 

f. Basic Authority for the Department of State, as amended 

(PubHc Law 84-885) 383 

g. The Immigration and Nationality Act, as amended (Public 

Law 82-414) (partial text) 390 

h. Transmittal of International Agreements — Case Act (Public Law 

92-403) 392 

i. State Department Transmittal Letter on Treaties and Other 

International Agreements (partial text of circular 175) 393 

j. Executive Order 11742 (Delegating to the Secretary of State 
Certain Functions With Respect to the Negotiation of 
International Agreements Relating to the Enhancement of 
the Environment) 408 

k. Executive Order 11651 (Textile Trade Agreements) 409 

1. Executive Order 11539 (Delegation of Authority to Negotiate 
Agreements and Issue Regulations Limiting Imports of 
Certain Meats) 411 

m. Executive Order 11517 (Providing for the Issuance and Signa- 
ture by the Secretary of State of Warrants Appointing Agents 
to Return Fugitives From Justice Extradited to the United 
States) 412 

n. Executive Order 11490 (Assigning Emergency Preparedness 

Functions to the Department of State) 413 

o. Executive Order 11423 (Providing for the Performance of Cer- 
tain Functions Heretofore Performed by the President With 
Respect to Certain Facilities Constructed and Maintained on ■ 
the Borders of the United States 415 | 

p. State Department Delegation of Authority No. 121 (Imports 

of Certain Meats) 418 

q. Memorandum on Action to Combat Terrorism, September 25, 

1972 - 419 

r. Memorandum on International Narcotics Control, August 17, 

1971 421 

2. Organization and Administration 423 

a. Foreign Service Act of 1946, as amended 427 

b. Strengthening the Organization and Administration of the 

Department of State (PubHc Law 81-73, as amended) 503 

c. Executive Order 11636 (Employee-Management Relations in 

the Foreign Service of the United States) 505 

d. Executive Order 11264, as amended (Board of the Foreign 

Service and Board of Examiners for the Foreign Service) 514 



XI 



D. Department of State — Continued 

2. Organization and Administration — Continued 

e. Interdepartmental Operations of the U.S. Government Over- Page 



seas 517 

(1) Presidential Announcement of the Structure, Role, and 

Staff of the National Security Council 517 

(2) Department of State Foreign Affairs Manual Circular 

No. 521, February 6, 1969 (Reorganization of the 
National Security Council System and Direction, 
Coordination and Supervision of Interdepartmental 
Activities Overseas) 519 

3. Passport Laws and Regulations 522 

a. Protection of Citizens Abroad (Act of July 27, 1868) 522 

b. Passport Authority 523 

(1) Secretarv of State's Passport Authority (Act of July 3, 

1926) " (partial text) 523 

(2) Executive Order 11295 (Delegation of Authority) 523 

c. Passport Limitations 524 

(1) Allegiance to the United States (Act of July 14, 1902) _ _ 524 

(2) Application for Passport (Act of June 15, 1971, as 

amended) 524 

(3) Five Year \'alidity of Passport (Act of July 3, 1926, as 

amended) (partial text) 524 

(4) Fees (Act of June 4, 1920, as amended) (partial text)___ 524 

(5) Denial of Passports to Members of Communist Orga- 

nizations (Act of September 23, 1950, as amended) 
(partial text) 525 

d. Regulations of the Secretary of State, as amended (Subjects: 

Nationality Procedures, Passports, Marriage, Travel Control 

in Time of War or National Emergency) 526 

e. Emergency Provisions 551 

(1) Travel Control of Citizens and Aliens During War or 

National Emergency (Immigration and Nationality 

Act of 1952) (partial text) 551 

(2) Presidential Proclamation 3004 (Control of Persons 

Leaving or Entering the United States) 553 

f. Criminal Provisions 556 

(1) Punishable Violations (Act of June 25, 1948) (partial 

text) 556 

(2) Statute of Limitations (Act of June 30, 1951) (partial 

text) 557 

4. Foreign Service Buildings 558 

a. Foreign Service Buildings Act, 1926, as amended 558 

b. The Act of July 25, 1946 (Authorizing Funds for Acquisition of 

Buildings and Grounds in Foreign Countries) 564 

c. The Act of May 25, 1938 (Authorizing Additional Funds for 

Buildings for the Use of Diplomatic and Consular Establish- 
ments of the United States) 565 

5. Transfer of Property — For L'sc as a Headquarters Site for the Organiza- 

tion of American States (Public Law 90-553, as amended) 566 

6. Foreign Gifts and Decorations 568 

a. Foreign Gifts and Decorations Act of 1966, as amended (Public 

Law 89-673) 568 

b. Receipt and Disposition of Foreign Gifts and Decorations 

(Public Law 90-83) (partial text) 569 

c. Executive Order 11320 (Delegating Authority to Prescribe Rules 

and Regulations Relating to Foreign Gifts and Declarations). 571 

d. Regulations of the Secretary of State (Acceptance of Gifts and 

Decorations from Foreign Governments) 572 

e. Senate Resolution 314, 90th Congress, July 19, 1968 575 



xn 



D. Department of State — Continued Page 

7. Migration -and Refugee Assistance 576 

a. Migration and Refugee Assistance Act of 1962, as amended 576 

b. Executive Order 11077 (Administration of the Migration and 

Refugee Assistance Act of 1962) 580 

c. Protocol Relating to the Status of Refugees (with reservation) _ _ 581 

d. Convention Relating to the Status of Refugees 586 

e. Indochina Migration and Refugee Assistance Act of 1975 (Public 

Law 94-23) 604 

f. Appropriations for Special Assistance to Refugees from Cam- 

bodia and Vietnam (Public Law 94-24) 606 

8. Recognition by the United States of Foreign Governments (S. Res. 205, 

91st Congress) 607 

E. INFORMATION AND EDUCATIONAL AND CULTURAL EX- 

CHANGE PROGRAMS 609 

1. United States Information and Educational Exchange Act and Related 

Materials 611 

a. United States Information and Educational Exchange Act of 

1948, as amended 611 

b. United States Information Agency Appropriations Authorization 

Act of 1973 (Public Law 93-168) (partial text) 627 

c. USIA Appropriations, 1976 (PubUc Law 94-121) (partial 

text) 628 

d. Reorganization Plan No. 8 of 1953 (Establishing the USIA)___ 631 

e. Executive Order 10477, as amended (Functions of the Director 

of the USIA) 633 

f. Memorandum by the President to the Director, U.S. Informa- 

tion Agency, Describing the Mission of the Agency, Janu- 
ary 25, 1963 636 

g. Executive Order 11522 (Assigning Emergency Preparedness 

Functions to the USIA) 637 

h. Public Law 89-274 (USIA Film ''John F. Kennedy— Years of 

Lightning, Day of Drums") 639 

i. Public Law 90-494 (Foreign Service Information Officer Corps)- 640 
j. Executive Order 11434 (Foreign Service Personnel Systems) 646 

2. Mutual Educational and Cultural Exchange Act and Related Materials. 648 

a. Mutual Educational and Cultural Exchange Act of 1961, as 

amended (Fulbright-Hays Act) 648 

b. Executive Order 11034, as amended (Administration of the 

Mutual Educational and Cultural Exchange Act of 1961) 662 

c. State Department Delegation of Authority No. 105, as amended- 667 

3. Center for Cultural and Technical Interchange Between East and West 

Act of 1960 (Partial Text of Mutual Security Act of 1960) 669 

4. Other Material Relating to International Educational Exchange 671 

a. International Education Act of 1966, as amended (Public Law 

89-698) (partial text) 671 

b. International Educational Exchange Activities (Public Law 

83-665) (partial text) 677 

c. Japan-United States Friendship Act (Public Law 94-118) 678 

5. Exchange of Materials and Objects 683 

a. Agreement for Facilitating the International Circulation of 

Visual and Auditory Materials of an Educational, Scientific, 

and Cultural Character (Beirut Agreement of 1949) 683 

b. Executive Order 11311 (Carrying Our Provisions of Beirut 

Agreement of 1949) 689 

c. Agreement on the Importation of Educational, Scientific, and 

Cultural Materials (Florence Agreement) (with reservation) __ 690 

d. Exemption from Judicial Seizure of Cultural Objects Imported 

for Temporary Exhibition 699 

(1) Public Law 89-259 699 

(2) Executive Order 1131 (Designating Secretary of State 

to Perform Functions Relating to Certain Objects of 
Cultural Significance Imported Into the United States 
for Temporary Display or Exhibition) 700 



xm 



E. Information and Education and Cultural Exchanges Programs — 

Continued Page 

6. Patent Cooperation Treaty Act (Public Law 94-131) 701 

7. United States Recognition and Participation in International Exposi- 

tions (Public Law 91-269) 710 

8. Board for International Broadcasting Act of 1973 (Radio Free Europe/ 

Radio Liberty) 713 

a. Public Law 93-129, as amended 713 

b. Appropriations, 1975 (Public Law 93-433) (partial text) 717 

F. UNITED NATIONS AND OTHER INTERNATIONAL ORGANIZA- 

TIONS 719 

1. Charter of the United Nations (amended) 721 

2. Statute of the International Court of Justice 746 

Connally Reservation 759 

3. List of Members of the United Nations 760 

4. The United Nations Participation Act of 1945, as amended (Public 

Law 79-264) 762 

5. The United Nations Headquarters Agreement Act (Public Law 80- 

357) 768 

6. Agreement Between the United Nations and the United States Re- 

garding the Headquarters of the United Nations (amended) 770 

7. Appropriations Limitation on Contributions to International Organi- 

zations (Public Law 92-544) (partial text) 782 

8. Authorizing Loans to the United Nations 784 

a. Effecting a Loan Agreement of the United States and the 

United Nations Signed at Lake Success, New York, March 

23, 1948 (Public Law 80-903) 784 

b. Authorizing a Loan to the United Nations (Public Law 87- 

731) 789 

9. Rhodesia Resolution 790 

a. Security Council Resolution 253, Adopted May 29, 1968 790 

b. Executive Order 11419 (Relating to Trade and Other Trans- 

actions Involving Southern Rhodesia) 794 

c. Armed Forces Appropriation Authorization, 1972 (Public 

Law 92-156) (partial text) 797 

10. United Nations Peacekeeping Forces in the Middle East (Public Law 

94-37) 798 

11. Response to United Nations Resolution on Zionism (House Resolution 

855, 94th Congress) 799 

12. United Nations Environment Program Participation Act of 1973 

(Public Law 93-188) 800 

13. Privileges and Immunities 801 

a. The International Organizations Immunities Act, as amended 

(Public Law 79-291) (partial text) 801 

b. Convention of Privileges and Immunities of the United Nations 

(with reservation) 810 

c. Extending Certain Privileges to Representatives of Member 

States on the Council of the Organization of American States 
(Public Law 82-486, as amended) 819 

d. Extending Diplomatic Privileges to the Mission of the Com- 

mission of the European Communities (Public Law 92-499) __ 820 

e. Act for the Protection of Foreign Officials and Official Guests of 

the United States (Public Law 92-539) 821 

f. Executive Protective Service (Public Law 80-771, as amended) 

(partial text) 825 

g. Diplomatic Privileges and Immunities for the Liaison Office of 

the People's Republic of China (Public Law 93-22) 826 

h. Executive Order 11771 (Extending Diplomatic Privileges and 

Immunities to the Liaison Office of the People's Republic of 
China in Washington, D.C., and to Members Thereof) 827 

G. FINANCIAL INSTITUTIONS 829 

1. Export-Import Bank Act of 1945, as amended (Public Law 79-173) __ 831 

2. Export Expansion 841 

a. Public Law 90-390 (Improving the U.S. Balance of Payments). 841 

b. Executive Order 11420 (Establishing the Export Expansion 

Advisory Committee) 843 



XIV 



G. Financial Institutions — Continued Page 

3. Bretton Woods Agreements Act, as amended (Public Law 79-171) 844 

4. Special Drawing Rights Act, as amended (Public Law 90-349) 854 

5. Par Value Modification Act, as amended (Public Law 92-268) 856 

6. Foreign Currency Reports (Public Law 93-110) (partial text) 858 

7. Executive Order 11269, as amended (National Advisory Council on 

International Monetary and Financial Policies) 860 

8. International Monetary Fund 863 

a. Articles of Agreement (amended) 863 

b. Text of the Decision of the Executive Directors of the Inter- 

national Monetary Fund, January 5, 1962 919 

c. Exchange of Correspondence Between M. Wilfrid Baum- 

gartner, Minister of Finance, France, and Douglas Dillon, 

Secretary of the Treasury, United States 926 

9. International Bank for Reconstruction and Development (Amended 

Articles of Agreement) 929 

10. International Finance Corporation 955 

a. International Finance Corporation Act, as amended (Public 

Law 84-350) 955 

b. Articles of Agreement (amended) 959 

11. Inter- American Development Bank 976 

a. Inter-American Development Act, as amended (Public Law 

86-147) 976 

b. Agreement Establishing the Inter- American Development 

Bank (amended) 985 

12. International Development Association 1014 

a. International Development Association Act, as amended (Pub- 

lic Law 86-565) 1014 

b. Articles of Agreement 1021 

13. Asian Development Bank 1041 

a. Asian Development Bank Act, as amended (Public Law 89- 

369) 1041 

b. Articles of Agreement (with declaration) 1047 

14. Settlement of Investment Disputes 1081 

a. Convention on the Settlement of Investment Disputes Act 

of 1966 (Public Law 89-532) 1081 

b. Convention on the Settlement of Investment Disputes Between 

States and Nationals of Other States 1082 

c. Resolution 65-14, Approval for Submission of Settlement of 

Investment Disputes 1099 

H. WAR POWERS, COLLECTIVE SECURITY TREATIES, AND RE- 

LATED MATERIAL 1101 

1. War Powers 1103 

a. War Powers Resolution (Public Law 93-148) 1103 

b. Presidential Proclamation 2914 (Proclaiming the Existence of 

a National Emergency) 1108 

2. Latin America 1110 

a. Inter- American Treaty of Reciprocal Assistance 1110 

b. Organization of American States 1116 

(1) Charter of the Organization of American States as 

amended by the Protocol of Amendment (with 
reservations) 1116 

(2) Protocol of Amendment to the Charter of the Organiza- 

tion of American States (Protocol of Buenos Aires) __ 1145 

c. Act of Bogotd 1148 

d. The Charter of Punta del Este, Establishing an Alliance for 

Progress Within the Framework of Operation Pan America. _ 1154 

e. Cuban Resolution (Public Law 87-733) 1167 

f. Resolution on Communist Subversion in the Western Hemi- 

sphere (H. Res. 560, 89th Cong., agreed to September 20, 
1965) 1168 



XV 



H. War Powers, Collective Security Treaties, and Related Material — 

Continued Page 

3. North Atlantic Treaty (amended) 1169 

4. Berlin Resolution (H. Con. Res. 570, 87th Congress) 1173 

5. Mutual Defense Treaty Between the United States of America and the 

Republic of the Philippines 1174 

6. Security Treaty Between Australia, New Zealand, and the United 

States of America 1176 

7. ^Mutual Defense Treaty Between the United States of America and 

the Republic of Korea (with understanding) 1179 

8. Southeast Asia Collective Defense Treaty and Protocol Thereto (with 

understanding) 1181 

9. Indochina Resolutions 1185 

a. Tonkin Gulf Resolution (Public Law 88-408) (Repealed) 1185 

b. United States Servicemen Missing in Southeast Asia (H. Res. 

335, 94th Congress) 1186 

10. Mutual Defense Treaty Between the United States of America and 

the Repubhc of China 1188 

11. Formosa Resolution (Pubhc Law 84-4) (Repealed) 1192 

12. Treaty of Mutual Cooperation and Security Between the United States 

of America and Japan 1193 

13. Middle East Resolutions 1200 

a. Resolution to Promote Peace and Stability in the Middle East 

(Public Law 85-7) 1200 

b. Deploring the Outbreak of Hostilities in the Middle East 

(S. Res. 179, 93d Congress) 1202 

c. Relating to the National Security of the United States (S. Res. 

200, 93d Congress) 1203 

d. Security Council Resolution 242 (1967) 1204 

e. Security Council Resolution 338 (1973) 1205 

f. Implementing the United States Proposal for the Early Warning 

System in Sinai (Pubhc Law 94-110) 1206 

14. Resolution to Express the Sense of the Senate on the Agreement of 

Friendship Between the United States and Spain (S. Res. 469, 91st 
Congress) 1208 

15. Resolution Relative to the Submission of Any Portuguese Base Agree- 

ment as a Treaty (S. Res. 214, 92d Congress) 1209 

16. National Commitment (S. Res. 85, 91st Congress) 1210 

L ENERGY AND NATURAL RESOURCES 1211 

I. Atomic Energy Act and Related Materials 1213 

a. Atomic Energy Act of 1954, as amended (Pubhc Law 83-703) 

(partial text) 1213 

b. EURATOM Cooperation Act of 1958, as amended (Pubhc 

Law 85-846) 1236 

c. EURATOM Resolution (S. Con. Res. 116, 85th Congress). __ 1240 

d. International Atomic Energy Agency Participation Act of 1957, 

as amended (Pubhc Law 85-177) 1241 

e. Executive Orders Concerning International Atomic Coopera- 

tion 1245 

(1) Executive Order 11057 1245 

(2) Executive Order 10899 1246 

(3) Executive Order 10841, as amended 1247 

2. Energy Management 1249 

a. Federal Energy Administration Act of 1974 (Pubhc Law 93-275) 

(partial text) 1249 

b. Energy Supply and Environmental Coordination Act of 1974, 

as amended (Pubhc Law 93-319) 1254 

c. Energy Policy and Conservation Act (Pubhc Law 94-163) 

(partial text) 1258 

d. Agreement on an International Energy Program 1275 



XVI 



I. Energy and Natural Resources — Continued 

3. Solar Energy Research, Development, and Demonstration Act of 1974 Page 

(Public Law 93-473) (partial text) 1299 

4. Domestic Stock of Critical Materials 1301 

a. National Commission on Supplies and Shortages Act of 1974, as 

amended (PubUc Law 93-426) (partial text) 1301 

b. Defense Production Act Amendments of 1975, as amended 

(Public Law 94-152) (partial text) 1305 

c. Strategic and Critical Materials Stock Piling Act, as amended 

(PubUc Law 76-1 17) (With List of Basic Stockpile Materials) _ 1310 

5. Negotiations With Canada Concerning the Alaska Pipeline (Public Law 

93-153) (partial text) 1316 

J. ARMS CONTROL AND DISARMAMENT 1317 

1. Arms Control and Disarmament Act, as amended (Public Law 87-297). 1319 

2. Treaties and Agreements 1334 

a. Nuclear Test Ban Treaty 1334 

b. Treaty on the Non-Proliferation of Nuclear Weapons 1337 

c. Prohibition of Nuclear Weapons in Latin America 1343 

(1) Additional Protocol II 1343 

(2) Understandings and Declarations Included in the U.S. 

Instrument of Ratification 1345 

d. Agreement on Measures To Reduce the Risk of Nuclear War 

Between the United States of America and the Union of 

Soviet Socialist Republics 1347 

e. Seabed Arms Control Treaty 1349 

f. SALT Agreements 1353 

(1) Joint Resolution on Interim Agreement (Public Law 92- 

448) 1353 

(2) Treaty on the Limitation of Anti-Ballistic Missile 

Systems 1355 

(3) Interim Agreement on Certain Measures With Respect 

to the Limitation of Strategic Offensive Arms, With 

Associated Protocol 1360 

(4) Agreed Interpretations and Unilateral Statements 1363 

(5) Standing Consultative Commission on Arms Limitation. 1370 

(6) Standing Consultative Commission on Arms Limitation: 

Regulations 1372 

g. Agreement on the Prevention of Nuclear War 1374 

h. Agreements on Chemical and Biological W^eapons 1376 

(1) Geneva Protocol of 1925 (with reservations) 1376 

(2) Biological Weapons Convention 1378 

(3) Executive Order 11850 (Renunciation of Certain Uses 

in War of Chemical Herbicides and Riot Control 

Agents 1383 

K. AVIATION AND SPACE 1385 

1. Unlawful Seizure of Aircraft 1387 

a. Antihijacking Act of 1974 (Public Law 93-366) (partial text)_- 1387 

b. Convention for the Suppression of Unlawful Seizure of Aircraft. 1393 

2. Communications SatelHte Act of 1962, as amended (PubHc Law 87-624) _ 1398 

3. Executive Order 11191, as amended (Carrying Out Communications 

Satellite Act of 1962) 1409 

4. Executive Order 11556 (Assigning Telecommunications Functions) 1411 

5. Treaty on Outer Space 1415 

6. Astronaut Assistance and Return Agreement 1421 

7. Convention on International Liability for Damage Caused by Space 

Objects 1425 

8. International Cooperation in Scientific Research 1433 

a. National Science Foundation Act, as amended (Public Law 81- 

507) (partial text) 1433 

b. National Aeronautics and Space Act of 1958 (Public Law 85- 

568) (partial text) 1434 

c. National Aeronautics and Space Administration Authorization 

Act (Public Law 94-39) (partial text) 1435 



XVII 



Page 

L. LAW OF THE SEAS AND SELECTED MARITIME LEGISLATION. 1437 

1. Law of the Seas 1439 

a. Convention on the Territorial Sea and the Contiguous Zone___ 1439 

b. Convention on the High Seas 1447 

c. Convention on Fishing and Conservation of the Living Re- 

sources of the High Seas (with reservation) 1456 

d. Convention on the Continental Shelf 1463 

e. United States Ocean Policy at the Law of the Sea Conference 

(House Resolution 330, 93d Congress, agreed to April 2, 

1973) 1467 

f . Endorsing the Objectives of the President's Ocean Policy State- 

ment (Senate Resolution 82, 93d Congress, agreed to July 9, 

1973) 1469 

2. Oil PoUution 1471 

a. Oil Pollution Act, 1961, as amended (Public Law 87-167) 1471 

b. Intervention on the High Seas Act (Public Law 93-248) 1477 

c. Deepwater Port Act of 1974 (Public Law 93-627) (partial text) _ 1480 - 

3. Northwest Atlantic Fisheries Act of 1950, as amended (Public Law 

81-845) 1486 

4. North Pacific Fisheries Act of 1954, as amended (Public Law 83-579) _ 1493 

5. Tuna Conventions 1500 

a. Tuna Convention Act of 1950, as amended (Public Law 

81-764) 1500 

b. Atlantic Tunas Convention Act of 1975 (Public Law 94-70) __ 1507 

6. Whaling Convention Act of 1949 (Public Law 81-676) 1517 

7. Bilateral Inter-American Fishing Agreements with the United States. 1523 

a. Brazil— Offshore Shrimp Fisheries Act (Pubhc Law 93-242)... 1523 

b. Canada — Sockeye Salmon or Pink Salmon Fishing Act of 1947, 

as amended (Public Law 80-255) ... 1532 

8. Fishermen's Protective Act of 1967, as amended (Pubhc Law 83-680). 1538 

9. Endangered Species Act of 1973 (Public Law 93-205) (partial text)... 1544 
10. Marine Mammal Protection Act of 1972, as amended (Public Law 

92-522) (partial text) 1553 

M. FOREIGN ECONOMIC POLICY: TARIFF AND TRADE LAWS 1563 

1. Trade Act of 1974 and related documents 1565 

a. Trade Act of 1974 (Public Law 93-618) (partial text) 1565 

b. Executive Order 11888 (Implementing the Generalized System 

of Preferences) 1644 

c. Romania — U.S. Trade Relations 1650 

(1) Executive Order 11854 (Waiver Under the Trade Act 
of 1974 with Respect to the Socialist Republic of Roma- 
nia) 1650 

(2) Presidential Proclamation 4369 (Agreement on Trade 
Between the United States of America and the Socialist 
Republic of Romania) 1651 

d. Executive Order 11846 (Administration of the Trade Agree- 

ments Program) 1653 

2. Trade Expansion Act of 1962, as amended (Public Law 87-794) 1658 

3. The General Agreement on Tariffs and Trade 1671 

a. The General Agreement on Tariffs and Trade (amended) 1671 

b. Protocol Amending the General Agreement on Tariffs and 

Trade To Introduce a Part IV on Trade and Development- 1730 

c. International Antidumping Code 1737 

4. Antidumping Legislation 1748 

a. Antidumping Act, 1921, as amended (Public Law 67-10) 

(partial text) 1748 

b. Administration of the Antidumping Act, 1921 (Public Law 

90- 634) 1760 

5. Export Administration 1761 

a. Export Administration Act of 1969, as amended (Public Law 

91- 184) 1761 

b. Executive Order 11533 (Administration of the Export Admin- 

istration Act of 1969) 1775 

c. Executive Order 11753 (Establishing the President's Export 

Council) 1777 

65-998 0—76 2 



XVIII 



M. Foreign Economic Policy: Tariff and Trade Laws — Continued 

6. Trading With the Enemy Act of 1917, as amended (Public Law 65-91) Page 
(partial text) 1779 

7. Johnson A'ct — Financial Transactions With Foreign Governments (Pub- 

lic Law 80-722) (partial text) 1781 

8. International Economic Policy Act of 1972, as amended (Public Law 

92-412) 1782 

9. Foreign Investment in the United States 1787 

a. Foreign Investment Study Act of 1974 (Public Law 93-479) _ 1787 

b. Executive Order 11858 (Foreign Investment in the United 

States) 1792 

10. International Wheat Agreement 1794 

a. Wheat Trade Agreement, 1971 (amended) 1794 

b. Food Aid Convention, 1971 (amended) 1809 

c. Protocols for the Further Extension of the Wheat Trade Con- 

vention and the Food Aid Convention 1812 

11. Resolution With Respect to the World Food Situation 1820 

12. Collection and Publication of Foreign Commerce and Trade Statistics. 1822 

N. OTHER LEGISLATION AND DOCUMENTS 1825 

1. Provisions of Law Relating to Travel Outside the United States 1827 

a. Local Currency Availability 1827 

b. Reporting Requirements for House Interparliamentary Groups 

(Legislative Branch Appropriation Act of 1961, as amended) 
(partial text) 1829 

c. Availabilitv of Funds for Field Examination of Estimates 

(Public Law 83-207) (partial text) 1831 

d. International Air Transportation Fair Competitive Practices 

Act of 1974 (Public Law 94-623) (partial text) 1832 

2. Legislation Authorizing U.S. Participation in Parliamentary Confer- 

ences 1834 

a. Interparliamentary Union 1834 

(1) Public Law 74-170, as amended 1834 

(2) Public Law 75-354 1835 

(3) Public Law 85-474, as amended 1835 

b. Canada-United States Interparliamentary Group (Public Law 

86-42) 1836 

c. Mexico-United States Interparliamentary Group (Public Law 

86-420) 1837 

d. United States Group of the North Atlantic Assembly (Public 

Law 84-689, as amended) 1838 

3. International Claims Settlement Acts 1840 

a. International Claims Settlement Act of 1949, as amended (Public 

Law 81-455) 1840 

b. Foreign Claims Settlement Commission Appropriations, 1976 

(Public Law 94-121) (partial text) 1876 

c. Ryukyu Claims Settlement Act (Public Law 89-296) 1877 

d. Micronesian Claims Act of 1971, as amended (Public Law 

92-39) 1879 

(1) Civil Government for the Trust Territory of the Pacific 

Islands, as amended (Public Law 83-451) 1885 

(2) Trust Territory Economic Development Loan Fund, 

as amended (Public Law 92-257) 1889 

4. Registration of Foreign Agents 1890 

a. The Foreign Agents Registration Act of 1938, as amended 

(Public Law 75-583) 1890 

b. Contributions by Agents of Foreign Principals and Conflicts of 

Interest (Public Law 89-486) (partial text) 1905 

5. Logan Act — Private Correspondence With Foreign Governments (Public 

Law 80-772) _ 1907 

6. International Bridge Act of 1972 (Public Law 92-434) 1908 

INDEX 1911 



A. FOREIGN ASSISTANCE 



CONTENTS 

Page 

1. Foreign Assistance Acts 1 

a. The Foreign Assistance Act of 1961, as amended 9 

b. International Development and Food Assistance Act of 1975 

(partial text) 147 

Report Regarding Implementation of Recommendations 

of World Food Conference ^ 147 

International Organizations and Programs 147 

Limitation on Assistance to Chile 147 

Settlement of Debt Owed the United States 148 

Participation bj^ Other Countries in Providing Assistance to 

Israel or Egypt 148 

c. Foreign Assistance Act of 1974 (partial text) 149 

Ceiling on Fertilizers to South Vietnam 149 

Review of Military Assistance Program 149 

Limitation Upon Assistance to or for Chile 150 

Limitation on Military Assistance and Excess Defense 

Articles to Korea 150 

Limitation on Assistance for India 150 

Famine or Disaster Relief 150 

PoHcy With Respect to Indochina 151 

Principles Governing Economic Aid to Indochina 152 

Indochina Postwar Reconstruction 152 

Assistance to South Vietnamese Children 153 

Limitations With Respect to South Vietnam 154 

Limitations With Respect to Cambodia 156 

Limitations With Respect to Laos 156 

Nuclear Powerplants 158 

Gorgas Memorial Institute 158 

International Commission of Control and Supervision in 

Vietnam 158 

Policy on Assistance to Africa 158 

Policy on the Independence of Angola, Mozambique, and 

Guinea-Bissau 159 

Conventional Arms Trade 160 

Involvement of Puerto Rico in the Caribbean Development 

Bank 160 

Policy With Respect to Countries Most Seriouslv Affected 

by Food Shortages 1 160 

Repayment of Loans in Default 161 

d. Foreign Assistance Act of 1973 (partial text) 163 

Asian Development Bank Authorization 163 

Termination of Indochina War 163 

Limitation on Use of Funds for Indochina 163 

Political Prisoners 164 

Albert Schweitzer Hospital Authorization 164 

POWs and MIAs 164 

Rights in Chile 165 

Revision of Social Progress Trust Fund Agreement 165 

Prohibition of Assistance to North Vietnam 166 

Report Concerning Use of Military Assistance in Africa. _ 166 

World Food Shortages 166 

Use of Local Currencies 167 

e. Foreign Assistance Act of 1971 (partial text) 168 

Food for Peace Reduction 168 

Position of Under Secretary of State for Coordinating 

Security Assistance 168 

Periodic Authorizations for State and USIA 169 

Limitation on United Nations Assessment of United 

States _-. 169 

(1) 



2 



1. Foreign Assistance Acts — Continued 

f. Special Foreign Assistance Act of 1971, as amended (partial Page 

text) 170 

Authorization of Appropriations 170 

Transfer of Defense Articles to Korea 170 

Authorization of Local Currencies for Pakistan 171 

Limitation on Assistance to Cambodia 171 

g. Foreign Assistance Act of 1969, as amended (partial text) 172 

Part IV — The Inter- American Foundation Act 172 

Part V — Amendments to Other Acts I75 

h. Foreign Assistance Act of 1968 I79 

i. Foreign Assistance Act of 1967 I79 

j. Foreign Assistance Act of 1966 179 

k. Foreign Assistance Act of 1965 I79 

1. Foreign Assistance Act of 1964 (partial text) 180 

Religious Persecution 180 

m. Foreign Assistance Act of 1963 180 

n. Foreign Assistance Act of 1962 181 

2. Foreign Assistance Appropriations 182 

a. Joint Resolution [Temporary Appropriations for Fiscal Year 

1976], as amended (partial text) (Public Law 94-41) 182 

b. Joint Resolution [Temporary Appropriations for Fiscal Year 

1976] (Public Law 94-159) 186 

c. Joint Resolution [Temporary Appropriations for Fiscal Year 

1975], as amended (partial text) (Public Law 93-324) 187 

d. Joint Resolution [Temporary Appropriations for Fiscal Year 

1975] (partial text) (Public Law 93-448) 191 

e. Foreign Assistance and Related Programs Appropriation Act, 

1975 192 

f. Supplemental Appropriation Act, 1955, as amended (partial 

text— Sec. 1311, Valid Obligations) 204 

3. Other Foreign Assistance Related Legislation 206 

a. Latin American Development Act, as amended (Public Law 

86-735) 206 

[The Inter- American Foundation Act is on page 172.] 

b. Mutual Security Act of 1959, as amended (partial text) (Public 

Law 86-108) 209 

c. Mutual Security Act of 1954, as amended (retained provisions).. 210 

Sec. 402— Earmarking of Funds 210 

Sec. 408— North Atlantic Treaty Organization 210 

Sec. 414 — Munitions Control 211 

Sec. 417— Irish Counterpart 212 

Sec. 502 — Use of Foreign Currency 212 

Sec. 514 — International Educational Exchange Activities. _ 214 

Sec. 523 — Coordination With Foreign Policy 214 

Sec. 536 — Joint Commission on Rural Reconstruction in 

China 214 

d. Mutual Defense Assistance Control Act of 1951, as amended 

(Battle Act) 215 

e. Use of Foreign Currencies: 

(1) Supplemental Appropriation Act, 1953 (Section 1415, 

Availability of Foreign Credits) 219 

(2) General Government Matters Appropriation Act, 1962 

(Public Law 87-125) (partial text— Sec. 508, Provi- 
sion for Use of Foreign Credits by Federal Agencies). 220 

(3) Use of Reserved Foreign Currencies (Public Law 

89-677) 221 

f. Amendment to Merchant Marine Act of 1936, as amended (50 

percent of shipment on U.S.-flag vessels^ 222 

g. The Sugar Act of 1948, as amended (partial text — Sec. 408(c), 

Provisions for Withholding Sugar Quota) 224 

h. Fishermen's Protective Act of 1967, as amended (note) 225 

i. Emergency Security Assistance Act of 1973 226 

j. Foreign Disaster Assistance Act of 1974 (partial text) (Public 

Law 93-333) 228 

k. Amendments to the Board for International Broadcasting Act of 

1973 (partial text) (Public Law 94-104) 229 



3 



4. Executive Orders and Delegations of Authority Relating to Foreign Pasre 

Assistance 232 

a. Executive Order 10973, as amended (Administration of Foreign 

Assistance and Related Functions) 232 

b. State Department Delegation of Authority No. 104, as amended. 240 

c. Executive Order 11223 (Performance of Functions Authorized 

by the Foreign Assistance Act of 1961, as amended) 248 

d. Executive Order 11579 (Overseas Private Investment Corpora- 

tion) 250 

5. Foreign Mihtary Sales 253 

a. The Foreign Military Sales Act, as amended (PubUc Law 90- 

629) 253 

b. Foreign Military Sales Act Amendments, 1971, as amended 

(partial text) (PubHc Law 91-672) 267 

Sec. 5 — Sense of Congress Concerning Arms for Israel 267 

Sec. 6 — Sense of Congress for Review of Military Aid 

Programs and Discussion on Control of Armaments and 

Arms Trade 267 

Sec. 7 — Sale or Transfer of International Fighter Aircraft. _ 268 
Sec. 8 — Grants of Excess Defense Articles Charged Against 

Appropriated Funds 268 

Sec. 10 — Authorization Required Prior to Obhgation or 

Expenditure of Funds. _ 270 

Sec. 11 — Definitions of Defense Article, Excess Defense 

Articles, and Foreign Countrv 270 

Sec. 12— Repeal of Tonkin Gulf Resolution 270 

Sec. 13 — Detoxification of Chemical Munitions in Okinawa. 270 

c. Executive Order 11501, as Amended (administration of Foreign 

Mihtary Sales) 271 

6. Armed Forces Authorizations and Appropriations 273 

a. Department of Defense Appropriation Authorization Act, 1976 

(partial text) (Public Law 94-106) 273 

b. Department of Defense Appropriation Authorization Act, 1975 

(partial text) (Public Law 93-365) 275 

c. Armed Forces Appropriation Authorization, 1971 (partial text) 

(PubHc Law 91-441) 279 

d. Military Construction Appropriation Act, 1976 (partial text) 

(Public Law 94-138) 280 

7. Laws Relating to Loan or Sale of Vessels to Foreign Countries (partial 

text) (PubUc Law 84-1028) 281 



1. Foreign Assistance Acts 



a. The Foreign Assistance Act of 1961, as amended 

CONTENTS 

Part I: Pas* 

Chapter 1— Policy __ 10 

Section 102 — Statement of Policy 10 

Section 103 — Food and Nutrition 14 

Section 103A — Agricultural Research 15 

Section 104 — Population Planning and Health 15 

Section 105 — Education and Human Resources 16 

Section 106 — Technical Assistance, Energy, Research, Recon- 
struction, and Selected Development Problems 17 

Section 107 — Intermediate Technology 18 

Section 108 — Application of Existing Provisions. 18 

Section 109— Transfer of Funds 18 

Section 110 — Cost-Sharing and Funding Limits __ 19 

Section 111 — Development and Use of Cooperatives 19 

Section 113 — Integrating Women Into National Economies 19 

Section 114 — Limiting Use of Funds for Abortions 19 

Section 115 — Prohibiting Use of Funds for Certain Countries 20 

Section 116— Human Rights 20 

Chapter 2 — Development Assistance 21 

Title I — Development Loan Fund 21 

Section 201— General Authority 21 

Section 202— Authorization _ 22 

Section 203— Fiscal Provisions 23 

Section 204 — Development Loan Committee _ 24 

Section 206 — Regional Development in Africa 24 

Section 207 — Purposes of Development Assistance 24 

Section 208— Self-Help Criteria 25 

Section 209 — Multilateral and Regional Programs 25 

Title II — Technical Cooperation and Development Grants 26 

Section 211 — General Authority 26 

Section 212 — Authorization 28 

Section 214 — American Schools and Hospitals Abroad 28 

Section 215 — Loans to Small Farmers 29 

Section 216 — Voluntary Agencies. _1 29 

Section 217 — Used Equipment 30 

Section 218 — Fish and Other Protein Concentrates 30 

Section 219— Prototype Desalting Plant 30 

Section 220 — Programs for Peaceful Communication 31 

Section 220A— Suez Canal 32 

Title III — Housing and Other Credit Guaranty Programs 32 

Section 221 — Worldwide Housing Guaranties 32 

Section 222 — Housing Projects in Latin American Countries 32 

Section 222A — Agricultural and Productive Credit and Self- 
Help Community Development Programs 33 

Section 223 — General Provisions 34 

Title IV — Overseas Private Investment Corporation 36 

Section 231 — Creation, Purpose, and Policy 36 

Section 232 — Capital of the Corporation 38 

Section 233 — Organization and Management 38 

Section 234 — Investment Insurance and Other Programs 39 

(5) 



6 



Part I — Continued 

Chapter 2 — Development Assistance — Continued 

Title IV — Overseas Private Investment Corporation — Continued 

'Section 235 — Issuing Authority, Direct Investment Fund Page 



and Reserves 43 

Section 236 — Income and Revenues 45 

Section 237 — General Provisions Relating to Insurance and 

Guaranty Programs 45 

Section 238 — Definitions 47 

Section 239 — General Provisions and Powers 48 

Section 240 A — Reports to the Congress 49 

Title VI — Alliance for Progress 50 

Section 251 — General Authority 50 

Section 252 — Authorization 52 

Section 253 — Fiscal Provisions 53 

Title VII — Evaluation of Programs 53 

Section 261 — Evaluation of Programs 53 

Title VIII — Southeast Asia Multilateral and Regional Programs. 53 

Section 271 — General Provisions 53 

Section 272 — Special Provisions 53 

Title IX — Utilization of Democratic Institutions in Development. 54 
Section 281 — Utilization of Democratic Institutions in De- 
velopment 54 

Title X — Programs Relating to Population Growth 55 

Section 291 — General Provisions 55 

Section 292 — Authorization 55 

Title XI — Food Production Targets and Reports 56 

Section 295 — Food Production Targets and Reports 56 

Title XII — Famine Prevention and Freedom From Hunger 56 

Section 296 — General Provisions 56 

Section 297 — General Authority 58 

Section 298 — Board for International Food and Agricultural 

Development 59 

Section 299 — Authorization 60 

Section 300 — Annual Report 61 

Chapter 3 — International Organizations and Programs 61 

Section 301 — General Authority 61 

Section 302 — Authorization 63 

Section 303 — Indus Basin Development. 65 

Section 304 — United Nations Peacekeeping 65 

Section 305 — Integration of Women 66 

Chapter 4— [See Chapter 4 of Part II] 

Chapter 5 — Disaster Relief 66 

Section 451 — Contingency Fund 66 

Chapter 6 — Assistance to Countries Having Agrarian Economies 67 

Section 461 — Assistance to Countries Having Agrarian Economies. 67 

Chapter 7 — Joint Commissions on Rural Development 67 

Section 471 — Joint Commissions on Rural Development 67 

Chapter 8 — International Narcotics Control 68 

Section 481 — International Narcotics Control 68 

Section 482 — Authorization 69 

Chapter 9 — International Disaster Assistance 70 

Section 491 — Policy and General Authority 70 

Section 492 — Authorization 70 

Section 493 — Disaster Assistance — Coordination 70 

Section 494 — Disaster Relief Assistance 70 

Section 494A — Famine and Disaster Relief to Drought-Stricken 

African Nations 71 

Section 494B — African Development Program 71 

Section 495 — Cyprus Relief and Rehabilitation 72 

Chapter 10 — Assistance to Portugal and Portuguese Colonies in 

Africa Gaining Independence 72 

Section 496 — Assistance to Portugal and Portuguese Colonies in 

Africa Gaining Independence 72 



7 



Part II: 5*ase 

Chapter 1— Policy 73 

Section 501 — Statement of Policy 73 

Section 502 — Utilization of Defense Articles and Defense Services. 74 

Section 502A — Excess Defense Articles 74 

Section 502B— Human Rights 74 

Chapter 2 — Military Assistance 75 

Section 503 — General Authority 75 

Section 504 — Authorization 76 

Section 505 — Conditions of Eligibility 77 

Section 506 — Special Authority 78 

Section 510 — Restrictions on Training Foreign Military Students. 79 

Section 511 — Considerations in Furnishing MiHtary Assistance. _ 79 
Section 513 — Military Assistance Authorizations for Thailand and 

Laos, and South Vietnam 79 

Section 514 — Stockpiling of Defense Articles for Foreign Coun- 
tries 80 

Section 515 — Military Assistance Advisory Groups and Missions. 80 

Chapter 3 — Foreign Military Sales 81 

Section 524 — Reimbursements 81 

Chapter 4 — Security Supporting Assistance 82 

Section 531— General Authority 82 

Section 532 — Authorization 82 

Part III: 

Chapter 1 — General Provisions 83 

Section 601 — Encouragement of Free Enterprise and Private 

Participation 83 

Section 602 — Small Business 85 

Section 603 — Shipping on United States Vessels 85 

Section 604 — Procurement 86 

Section 605 — Retention and Use of Certain Items and Funds 87 

Section 606 — Patents and Technical Information 88 

Section 607 — Furnishing of Services and Commodities. 88 

Section 608 — Advance Acquisition of Property 89 

Section 609 — Special Account 90 

Section 610 — Transfer Between Accounts 91 

Section 611 — Completion of Plans and Cost Estimates 92 

Section 612 — Use of Foreign Currencies 93 

Section 613 — Accounting, Valuation, Reporting, and Administra- 
tion of Foreign Currencies 94 

Section 614 — Special Authorities 95 

Section 615 — Contract Authority 96 

Section 616— Availability of Funds 96 

Section 617 — Termination of Assistance 96 

Section 618— Use of Settlement Receipts 96 

Section 619 — Assistance to Newly Independent Countries 96 

Section 620 — Prohibitions Against Furnishing Assistance 96 

Chapter 2 — Administrative Provisions 105 

Section 621 — Exercise of Functions 105 

Section 621 A — Strengthened Management Practices 106 

Section 622— Coordination With Foreign Policy 106 

Section 623— The Secretary of Defense 107 

Section 624— Statutory Officers 107 

Section 625 — Employment of Personnel Ill 

Section 626 — Experts, Consultants, and Retired Officers 115 

Section 627 — Detail of Personnel to Foreign Governments 116 

Section 628 — Detail of Personnel to International Organizations.. 116 

Section 629— Status of Personnel Detailed 116 

Section 630 — Terms of Detail or Assignment 117 

Section 631 — Missions and Staffs Abroad 117 

Section 632 — Allocation and Reimbursement Among Agencies. 118 

Section 633— Waivers of Certain Laws 120 

Section 634 — Reports and Information 120 

Section 635— General Authorities 123 

Section 636 — Provisions on Uses of Funds 125 

Section 637 — Administrative Expenses 129 

Section 638— Exclusions 129 

Section 640 A — False Claims and Ineligible Commodities 129 

Section 640B— Coordination 130 

Section 640C— Shipping Differential 131 



8 



Part III— Continued Page 

Chapter 3 — Miscellaneous Provisions 131 

Section 641 — Effective Date and Identification of Programs 131 

Section 642 — Statutes Repealed 131 

Section 643 — Saving Provisions 132 

Section 644 — Definitions 132 

Section 645 — Unexpended Balances 134 

Section 646 — Construction 135 

Section 647 — Dependable Fuel Supply 135 

Section 648 — Special Authorization for Use of Foreign Currencies. 135 
Section 649 — Limitation on Aggregate Authorization for Use in 

Fiscal Year 1966 135 

Section 650 — Use of United States Armed Forces 135 

Section 651 — Sale of Supersonic Planes to Israel 135 

Section 652 — Limitation Upon Exercise of Special Authorities. 136 

Section 653 — Change in Allocation of Foreign Assistance 136 

Section 654 — Presidential Findings and Determinations 137 

Section 655 — Limitations Upon Assistance to or For Cambodia. _ 137 
Section 656 — Limitations on United States Personnel and Per- 
sonnel Assisted by United States in Cambodia 139 

Section 657 — Annual Foreign Assistance Report 139 

Section 658 — Limitation on Use of Funds 141 

Section 659 — Access to Certain Military Bases Abroad 141 

Section 660 — Prohibiting Police Training 141 

Section 661 — Reimbursable Development Programs 142 

Section 662 — Limitation on IntelHgence Activities 142 

Section 663 — Exchange of Certain Materials 142 

Section 664 — Waiver of Prohibition Against Assistance to Coun- 
tries Engaging in Certain Trade 143 

Section 665 — Transition Provisions for Interim Quarter 143 

Section 666 — Discrimination Against United States Personnel. _ 143 

Section 667 — Operating Expenses 143 

Part V: 

Chapter 1 — Indochina Postwar Reconstruction 144 

Section 801 — General Authority 144 

Section 802 — Authorization 144 

Section 803 — Assistance to South Vietnamese Children 144 

Section 804 — Center for Plastic and Reconstructive Surgery in 

Saigon , 145 

Section 805 — Authority 145 

Section 806 — Population, Narcotics, International Humanitarian 

and Regional Programs 145 

Part VI: 

Chapter 1 — Assistance to the Middle East 145 

Section 901 — Statement of Policy 145 

Section 902— Allocations 146 

Section 903 — Special Requirements Fund 146 



a. The Foreign Assistance Act of 1961, as amended 

Public Law 87-195 [S. 1983], 75 Stat. 424, approved September 4, 1961, as amended 
by the Foreign Assistance Act of 1962, Public Law 87-565 [S. 2996], 76 Stat. 255, 
approved August 1, 1%2; Public Law 87-793 [Postal Service and Federal Em- 
plovees Salary Act of 1962; H.R. 7927], 76 Stat. 832, approved October 11, 1962; 
Public Law 88-205 [H.R. 7885], 77 Stat. 379, approved December 16, 1963; 
Public Law 88-426 [Government Employees Salary Reform Act of 1964; H.R. 
11049], 78 Stat. 400, approved August 14, 1964; Public Law 88-448 [Dual Com- 
pensation Act; H.R. 7381], 78 Stat. 484, approved August 19, 1964; Public Law 

88- 633 [H.R. 11380], 78 Stat. 1009, approved October 7, 1964; Public Law 88-638 
[Amendments to Agricultural Trade Development and Assistance Act of 1954, 
as amended; S. 2687], 78 Stat. 1035, approved October 8, 1964; Public Law 

89- 171 [H.R. 7750], 79 Stat. 653, approved September 6, 1965; Public Law 
89-371 [H.R. 12169], 80 Stat. 74, approved March 18, 1966; Public Law 89-583 
[H.R. 15750], 80 Stat. 795, approved September 19, 1966; Public Law 90-137 
[S. 1872], 81 Stat. 445, approved November 14, 1967; Public Law 90-554 [H.R. 
15263], 82 Stat. 960, approved October 8, 1968; Public Law 90-629 [Foreign 
Military Sales Act; H.R. 15681], 82 Stat. 1320, approved October 22, 1968; 
Public Law 91-175 [H.R. 14580], 83 Stat. 805, approved December 30, 1969; 
Public Law 91-652 [Special Foreign Assistance Act of 1971; H.R. 19911], 84 
Stat. 1942, approved January 5, 1971; Public Law 92-226 [S. 2819], 86 Stat. 20, 
approved February 7, 1972; Public Law 92-352 [Foreign Relations Authoriza- 
tion Act of 1972; H.R. 14734], 86 Stat. 489, approved July 13, 1972; Public Law 
93-189 [S. 1443], 87 Stat. 714, approved December 17, 1973; Public Law 93-333 
[Foreign Disaster Assistance Act of 1974; H.R. 12412], 88 Stat. 290, approved 
July 8, 1974; Public Law 93-390 [Overseas Private Investment Corporation 
Amendments Act of 1974; S. 2957], 88 Stat. 763, approved August 27, 1974; 
Public Law 93-559 [S. 3394], 88 Stat. 1795, approved December 30, 1974; and 
Public Law 94-161 [International Development and Food Assistance Act of 
1975; H.R. 9-005], 89 Stat. 849, approved December 20, 1975. 



XoTE. — At publication time of this volume, neither legislation 
making appropriations for Foreign Assistance for fiscal year 
1976 nor Foreign Assistance legislation autliorizing security 
assistance programs, and sales, credits, and guaranties under the 
Foreign Military Sales Act for fiscal year 1976 had been enacted. 



AN ACT To promote the foreign policy, security, and general welfare of the 
United States by assisting peoples of the world in their efforts toward eco- 
nomic development and internal and external security, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as ''The Foreign Assistance Act of 1961." ^ 



1 The short title was added by Sec. Ill of the FA Appropriation Act, 1962. 

(9) 



10 



PART I 

Chapter 1 — Policy ; Development Assistance Authorizations ^ 

Sec. 101.3 Short Title.— * * * [Repealed— 1963] 
Sec. 102.^ Statement of Policy.— (a) ^ The Congress declares that 
the freedom, security, and prosperity of the United States are best sus- 
tained in a community of free, secure, and prospering nations. In par- 
ticular, the Congress reco^iizes the threat to world peace posed by ag- 
gression and subversion wherever they occur, and that ignorance, want, 
and despair breed the extremism and violence which lead to aggression 
and subversion. The Congress declares therefore that it is not only ex- 
pressive of our sense of freedom, justice, and compassion but also im- 
portant to our national security that the United States, through private 
as well as public efforts, assist the people of less developed countries in | 
their efforts to acquire the knowledge and resources essential for devel- 
opment and to build the economic, political, and social institutions 
which will meet their aspirations for a better life, with freedom, and 
in peace. 

In addition, the Congress declares that it is the policy of the United ] 
States to support the principles of increased economic cooperation and i 
trade among countries, freedom of the press, information, and religion, 
freedom of navigation in international waterways, and recognition of 
the right of all private persons to travel and pursue their lawful ac- 
tivities w^ithout discrimination as to race or religion. The Congress 
further declares that any distinction made by f orei^^n nations between f 
American citizens because of race, color, or religion in the granting of, 
or the exercise of, personal or other rights available to American citi- 
zens is repugnant to our principles. 

The Congress further declares that to achieve the objectives of this 
Act, programs authorized by this Act should be carried out in accord- i 
ance with the following principles : 

First, development is primarily the responsibility of the people of | 
the less developed countries themselves. Assistance from the United I 
States shall be used in support of, rather than substitution for, the ■ 
self-help efforts that are essential to successful development programs, 
and shall be concentrated in those countries that take positive steps to j 
help themselves. Maximum effort shall be made, in the administration 1 
of this Act, to stimulate the involvement of the people in the develop- | 
ment process through the encouragement of democratic participation 
in private and local governmental activities and institution-building 
appropriate to the requirements of the recipient nations. 

Second, the tasks of successful development in some instances require i 
the active involvement and cooperation of many countries on a multi- 



2 Sec. 101(a) of the FAAct of 1963 struck out the words "Short Title and" In the 
chapter heading, which formerly read "Short Title and Poltcy". Sec. 2(1) of the S 
FAArt of 197.-? artded the followinp: words to the chapter heading: "DEVELOPMENT !{ 
ASSISTANCE AT'TTTORTZATIONS". I 

•■'Sec. 101(b) of the FAAct. 190.3. repealed former Sec. 101, which related to the short 1 
title. 

* 22 use § 21.51. Sec. 102 was amended bv Sec. 101 of the FAAct of 1967. 
Sub.«ection designation "(a)" was added by Sec. 2(2) (A) of the FAAct of 1973. 

[Note. — The Foreign A<5sistance Act will be referred to as the FAAct and "this Act". 
The Foreign Assistance and Related Programs Appropriation Act, 197,5, will be referred j 
to as the FA Appropriation Act, 1975.1 



11 



lateral basis. Therefore, to the maximum extent practicable, other 
countries shall be encouraged to increase their contributions to devel- 
opment programs and projects so that the cost of such common under- 
takings, which are for the benefit of all, may be shared equitably by all. 

Third, assistance shall be utilized to encourage regional cooperation 
by less developed countries in the solution of common problems and 
the development of shared resources. 

Fourth, the first objects of assistance shall be to support the efforts 
of less developed countries to meet the fundamental needs of their 
peoples for sufficient food, good health, home ownership and decent 
housing, and the opportunity to gain the basic knowledge and skills 
required to make their own way forward to a brighter future. In sup- 
porting these objectives, particular emphasis shall be placed on utiliza- 
tion of resources for food production and voluntary family planning. 

Fifth, assistance shall wherever practicable be constituted of United 
States commodities and ser\-icos furnished in a manner consistent with 
other efforts of the United States to improve its balance of payments 
position. 

Sixth, assistance shall be furnished in such a manner as to promote 
efficiency and economy in operation so that the United States obtains 
maximum possible effectiveness for each dollar spent. 

Seventh, to the maximum extent practicable, the furnishing of agri- 
cultural commodities, disposal of excess property, and United States 
payments to international lending institutions, undertaken pursuant 
to this or any other Act, shall complement and be coordinated with 
assistance provided under this part. 

It is the sense of the Congress that every effort must be made to 
obtain a permanent peace in the Middle East. To help promote that 
objective, the United States should encourage, as part of pacific settle- 
ment, direct talks among the parties concerned, using such third party 
or United Nations assistance as they may wish. To this end, the 
President should undertake immediately (1) a thorough review of the 
needs of the several countries of that area, and (2) a reevaluation of 
United States policies aimed at helping meet those needs and securing 
a permanent peace in the area. 

It is further the sense of the Congress that in any case in which 
any forein^n country has severed diplomatic relations with the United 
States, the President should suspend assistance to such country under 
this or any other Act, including any program designed to complement 
assistance under this Act (such as sales of agricultural commodities 
under the Agricultural Trade Development and Assistance Act of 
1954^). When diplomatic relations are resumed, a further study 
should be made on a country-by-country basis to determine whether 
United States foreicrn policy objectives would be served by extending 
assistance under this or any other Act, including any program 
designed to complement such assistance. 

(b) ^ The Congress further finds and declares that, with the help of 
United States economic assistance, progress has been made in creat- 
ing a base for the economic progress of the less developed countries. 
At the same time, the conditions which shaped the United States 
foreign assistance program in the past have changed. Wliile the United 
States must continue to seek increased cooperation and mutually bene- 



« For text, see page 309. 
Subsection (b) was added by Sec. 2(2) (B) of the FAAct of 1973. 



12 



ficial relations with other nations, our relations with the less devel- 
oped' countries must be revised to reflect the new realities. In 
restructuring our relationships with these countries, the President 
should place appropriate emphasis on the following criteria : 

(1) Bilateral development aid should concentrate increasinerly on 
sharing American technical expertise, farm commodities, and indus- 
trial goods to meet critical development problems, and less on large- 
scale capital transfers, which when made should be in association with 
contributions from other industrialized countries working together in 
a multilateral framework. 

(2) Future United States bilateral support for development should 
focus on critical problems in those functional sectors which affect the 
lives of the majority of the people in the developing countries; food 
production; rural development and nutrition; population planning 
and health ; and education, public administration, and human resource 
development. 

(3) United States cooperation in development should be carried 
out to the maximum extent possible through the private sector, includ- 
ing those institutions which already have ties in the developing areas, 
such as educational institutions, cooperatives, credit unions, and 
voluntary agencies. 

(4) Development planning must be the responsibility of each sov- 
ereign country. United States assistance should be administered in a 
collaborative style to support the development goals chosen by each 
country receiving assistance. 

(5) United States bilateral development assistance should give the 
highest priority to undertakings submitted by host governments which 
directly improve the lives of the poorest of their people and their 
capacity to participate in the development of their countries. 

(6) The economic and social development programs to which the 
United States lends support should reflect, to the maximum extent 
practicable, the role of the United States private investment in such 
economic and social development programs. 

(7) Under the policy guidance of the Secretary of State, the agency 
primarily responsible for administering this part should have the 
responsibility for coordinating all United States development-related 
activities. 

(c) ^ Assistance under this chapter should be used not simply for 
the purpose of transferring financial resources to developing coun- 
tries, but to help countries solve development problems in accordance 
with a strategy that aims to increase substantially the participation of 
the poor. Accordingly, irroatest emphasis shall bo placed on countries 
and activities which effectively involve the poor in development, by 
expanding their access to the economy through services and institu- 
tions at the local level, increasing labor-intensive production, spread- 
ing productive investment and services out from maior cities to small 
towns and outlying rural areas, and otherwise providing opportunities 
for the poor to better their lives through their own effort. 

(d) ® For the purpose of assuring that development assistance fur- 
nished under this chapter is inci'oasingly concentrated in conntries 
which will make effective use of such assistance to help the poor tb- 



« Siihspotlons (r) nnd fd) were nddod bv Sec. .'^01 of Public T>aw 94-161, International 
Dovclopmont and Food Assistance Act of 1975 (89 Stat. 849). 



13 



ward a better life (especially such countries which are sutfering from 
the worst and most widespread poverty and are in greatest need of 
outside assistance), the President shall establish appropriate criteria 
to assess the commitment and progress of countries in meeting the 
objectives set forth in subsection (c) of this section and in other sec- 
tions of this chapter. In establishing such criteria, the President shall 
specifically take into account their value in assessing the efforts of 
countries to — 

( 1 ) increase agricultural productivity per unit of land through 
small-farm labor-intensive agriculture ; 

(2) reduce infant mortality ; 

(3) control population growth; 

(4) promote greater equality of income distribution, includ- 
ing measures such as more progress taxation and more equitable 
returns to small farmers; and 

(5) reduce rates of unemployment and underemployment. 
The president shall endeavor to bring about the adoption of similar 
criteria by international development organizations in which the 
United States partici]:)ates. Presentation materials submitted to the 
Congress with respect to assistance under this chapter, beginning with 
fiscal year 1977, shall contain detailed information concerning the 
steps being taken to implement this subsection. 



Note. — Foreign Assistance Appropriation Act, 1975, "Loan 
allocation. Development Assistance : Of the new obligational au- 
thority appropriated under this Act to carry out the provisions 
of sections 103-107, not less than $175,000,000 shall be available 
for loans." 



Note. — Prior Notification. Foreign Assistance Appropriation 
Act, 1975. "Sec. 113. None of the funds made available under 
this Act for 'Food and Nutrition, Development Assistance', 
'Population Planning and Health, Development Assistance', 
'Education and Human Resources Development, Development 
Assistance', 'Selected Development Problems, Development As- 
sistance', 'Selected Countries and Organizations, Development 
Assistance', 'International Organizations and Programs', 'United 
Nations Environment Fund', 'American Schools and Hospitals 
Abroad', 'Indus Basin Development Fund', 'International Nar- 
cotics Control', 'Assistance to Portugal and Portuguese colonies 
in Africa gaining independence', 'Administrative expenses. 
Agency for International Development', 'Indochina postwar 
construction assistance', 'Security supporting assistance', 'Middle 
East special requirements fund', 'Military assistance', 'Inter- 
Anierican Foundation', 'Peace Corps', 'Migration and refugee 
assistance', ^Assistance to Palestinian Refugees' shall be available 
for obligation for activities, programs, projects, countries, or 
other operations unless the Committee on Appropriations of the 
Senate and House of Representatives are previously notified 
fifteen days in advance." 



14 



Note. — The amounts appropriated by the Foreign Assistance 
and Related Programs Appropriation Act, 1975, appear as foot- 
notes to respective authorizations in the Foreign Assistance Act 
of 1961, as amended. Sec. 102 of the Foreign Assistance and Re- 
lated Programs Appropriation Act, 1975, states : "Except for the 
appropriations entitled 'Contingency fund', 'Famine or disaster 
relief assistance', and appropriations of funds to be used for 
loans, not more than 20 per centum of any appropriation item 
made avaihible by this title shall be obligated and/or reserved 
during the last month of availability." 



Sec. 103.^ Food and Nutrition. — (a)^° In order to alleviate starva- 
tion, hunger, and malnutrition, and to provide basic services to poor 
people, enhancing their capacity for self-help, the President is autho- 
rized to furnish assistance, on such terms and conditions as he may de- 
termine, for agriculture, rural development, and nutrition. There are 
authorized to be appropriated to the President for the purposes of this 
section, in addition to funds otherwise available for such purposes, 
$291,000,000 for the fiscal year 1974, and $500,000,000 for the fiscal year 
1975,11 $618,000,000 for the fiscal year 1976 and $745,000,000 for the 
fiscal year 1977,i- which amounts are authorized to remain available 
until expended. 

(b) i^ The Congress finds that, due to rising world food, fertilizer, 
and petroleum costs, human suffering and deprivation are growing in 
the poorest and most slowly developing countries. The greatest poten- 
tial for significantly expanding world food production at relatively low 
cost lies in increasing the productivity of small farmers who constitute 
a majority of the nearly one billion people living in those countries. In- 
creasing the emphasis on rural development and expanded food pro- 
duction in the poorest nations of the developing world is a matter of 
social justice as well as an important factor in slowing the rate of infla- 
tion in the industrialized countries. In the allocation of fimds under 
this section, special attention should be given to increasing agricultural 
production in the countries with per capita incomes under $300 a year 
and which are the most severely affected by sharp increases in world- 
wide commodity prices. 

(c) i* Assistance provided under this section shall be used primarily 
for activities which are specifically designed to increase the produc- 
tivity and income of the rural poor, through such means as creation 
and strengthening of local institutions linked to the regional and 
national levels ; organization of a system of financial institutions which 

» 22 use 2151a. Sec. 103 was added bv Sec. 2(3) of the FAAct of 1973. 

10 Subsection designation "(a)" was ndded bv Sec. 2(1) of the FAAct of 1974. 

" Sec. 2(2) of the FAAct of 1974 sub.stituted the words '-$291,000,000 for the fiscal year 
1974. and .i;500.000.000 for the fiscal vear 1975" in lieu of "$291,000,000 for each of the 
fiscal years 1974 and 1975". 

FA Appropriation Act. 1975 : "ff 300.000.000 : Provided, That in addition to the amounts 
provider! for loans to carry out the purposes of this paragraph, such amounts as are 
provided for under section 203 shall also be available for loans, together all such amounts 
to remain available until expended". 

i=*Sec. .302(1^ of PuMic Law 94-101 (S9 Stat. 849) added the words to this point 
commencing with "."^61 8.800.000 for th^^ fiscal year 1976 * * *". 

" Subser'tion (b^ was ndded bv Sec. 2(3) of the FAAct of 1974. 

i*Sec. 302(2) of Public Law 94-161 (89 Smt. 849) added subsections (c), (d), (e), (f), 
and (g). 



15 



provide both savings and credit services to the poor; stmiulation of 
small, labor-intensive enterprises in rnral towns ; improvement of mar- 
keting facilities and systems ; expansion of local or small-scale rural 
infrastructure and utilities such as farm-to-market roads, land 
improvement, energy, and storage facilities; establishment of more 
equitable and more secure land tenure arrangements ; and creation and 
strencthening of svstems to provide other services ancl supplies needed 
by farmers, s'lich as extension, research, training, fertilizer, water, and 
improved seed, in ways which assure access to them by small f armers. 

(d) Foreign currency proceeds from sales of commodities pro- 
vided under the Agricultural Trade Development and Assistance Act 
of 1951 which are owned by foreign governments shall be used when- 
ever practicable to carry out the provisions of this section. 

(e) In order to carry out the purposes of this section, the President 
is authorized to participate in and provide, on such terms and condi- 
tions as he mav determine, up to $200,000,000 to the International Fund 
for Agricultural Development. There is authorized to be appropriated 
to the President without fiscal year limitation $200,000,000 for such 
contribution. 

( f ) Xo funds may be obligated to carry out subsection (e) unless — 

(1) satisfactory agreement is reached on the Articles of Agree- 
ment for the International Fund for Agricultural Development ; 

(2) such Articles of Agreement are reviewed and approved 
by the Senate Committee on Foreiirn Relations and the House 
Committee on International Relations; 

(?>) all donor commitments to the International Fund for 
Agricultural Development total at least $LOqO,000,000 equivalent 
in convertible currencies, except that the United States contribu- 
tion shall be proportionally reduced if this combined goal is not 
met; and 

(4) there is equitable burden sharing among the different 
categories of contributors. 

(g) ^"^ The President shall submit to the Congress full and complete 
data concerning United States participation in, and operation of, the 
International Fiuul for Agricultural Development in the annual 
presentation materials on proposed economic assistance programs. 

Sec. 103 A."'-' Agricultural Research. — Agriculturiil research car- 
ried out under this Act shall (1) take account of the special needs of 
small farmers in the determination of research priorities, (2) include 
research on the interrekationships among technology, institutions, and 
economic, social, and cultural factors affecting small-farm agriculture, 
and (-]) make extensive use of field testing to adapt basic research to 
local conditions. Special emphasis shall be placed on disseminating 
research results to the farms on which they can be put to use, and 
especially on institutional and other arrangements needed to assure 
that small farmers have effective access to both new and existing 
imi:) roved technology. 

Sec, 104.^^ Population Planning and Health. — (a) ^' In order to in- 
crease the opportunities and motivation for family planning, to reduce 
the rate of population growth, to prevent and combat disease, and to 

1" 22 use 2irjla-l. Sec. 103A was added by Sec. 303 of Public Law 94-161 (89 Stat. 849). 

^"22 use 21olb. Sec. 104 was added bv Sec. 2(3) of the FAAct of 1973. 

1' Sec. 304(1) of Public Law 94-161 (89 Stat. 849) added subsection designation "(a)". 



05-998—76 3 



16 



help provide health servicv^s for the great majority, the President is 
authorised to furnish assistance on such terms and conditions as he 
may determine, for population planning and health. There are author- 
ized to be appropriated to the President for the purposes of this sec- 
tion, in addition to the funds otherwise available for such purposes, 
$145,000,000 for the fiscal year 1974, and $165,000,000 for the fiscal vear 
1975,i« $243,100,000 for the fiscal year 1976 and $275,600,000 for the 
fiscal year 1977,^^ which amounts are authorized to remain available 
until expended. Xot less than 67 percent of the funds made available 
imder tliis section for any fiscal year shall be used for population plan- 
ning, either in separate programs or as an element of health 
pro2:rams.^*^ 

(b)-^ Assistance provided under this section shall be used primarily 
for extension of low-cost, integrated delivery systems to provide health 
and family planning services, especially to rural areas and to the poor- 
est economic sectors, using- paramedical and auxiliary medical person- 
nel, clinics and health posts, commercial distribution systems, and 
other modes of community outreach ; health programs which empha- 
size disease prevention, environmental sanitation, and health educa- 
tion; and population planning programs which include education in 
responsible parentliood and motivational programs, as well as deliv- 
ery of family planning services and which are coordinated with pro- 
grams aimed at reducing the infant mortality rate, providing better 
nutrition to pregnant women and infants, and raising the standard of 
living of the poor. 

Sec. 105,^'^ Education and Human Resources Development. — 
(a) ^3 In order to reduce illiteracy, to extend basic education and to in- 
crease manpower training in skills related to development, the Presi- 
dent is authorized to furnish assistance on such terms and conditions as 
he may determine, for education, public administration, and human re- 
source development. There are authorized to be appropriated to the 
President "^or th3 purposes of this section, in addition to funds other- 
wise available for such purposes, $90,000,000 for the fiscal year 1974, 
and $92,000,000 for the fiscal year 1975,^* $89,200,000 for the fiscal year 
1976 and $101,800,000 for the fiscal year 1977,-^ which amounts are 
authorized to remain available until expended. 



i^Sec. 4(1) of the FAAct of 1974 substituted the words ".$145,000,000 for the fiscal 
year 1974, and $105,000,000 for the fiscal j-ear 1975" in lieu of $145,000,000 for each of 
the fiscal years 1974 and 1975". 

FA Appropriation Act, 1975 : "$125,000,000 : Provided, That in addition to the amounts 
provided for loans to carry out the purposes of this paragraph, such amounts as are 
provided for under section 203 shall also be available for loans, together all such amounts 
to remain available until expended : Provided further, That not more thtjn $110,000,000 
appropriated or made jivnilable under this Act shall be used for the purposes of section 
291 during the current fiscal year." 

10 Sec. .304(2) of Public Lav/ 94-161 (89 Stat. 849) added the words to this point 
commoncing with "$243,100,000 for the fiscal year 1976 * * *". 

^oTlii.^ sentence was added by Sec. 304(3) of Public Law 94-161 (80 Stat 849). 

21 Subsection (b) was added by Sec. 304(4) of Public Law 94-161 (SO Stat. 849). 

-^TTSC 2151c. Sec. 105 was added by Sec. 2(3) of the FAAct of 1973. 

"Sec. 305(1) of Public Law 94-161 (89 Stat. 849) added subsection designation "(a)". 

2* Sec. 5 of the FAAct of 1974 substituted the words "$90,000,000 for the fiscal year 
1974. and :;:92 000.000 for the fiscal year 1975" in lieu of "$90,000,000 for each of the 
fiscal years 197^ luul l')75". 

FA Appropivjiio:. Act, 1975: "$82,000,000: Provided. That in addition to the amounts 
provided for luuii;; to carry out the purposes of this paragraph, such amounts as are pro- 
vided for under section 203 shall also be available for loans, together all such amounts to 
remain available until expended." 

25 Sec. 305(2) of Public Law 94-161 (89 Stat. 849) added the words to this point com- 
mencing with "$89,200,000 for the fiscal year 1976 * * *". 



17 



(b) =^ Assistance provided under tliis section sliall be used primarily 
to expand and strengthen nonformal education methods, especially 
those desiirned to improve productive skills of rural families and the 
urban poor and to provide them with useful information; to increase 
the relevance of formal education systems to the needs of the poor, 
especially at the primary level, through reform of curricula, teachinfr 
materials, and teaching methods, and improved teacher training; and 
to strengthen the management capabilities of institutions which enable 
the poor to participate in development. 

(c) -^ Of the amount authorized to be appropriated by subsection 
(a), not less than $1,000,000 shall be available to support the southern 
African student program and the southern African training program, 
for the purpose of providing educational assistance to Southern 
Africans. 

Sec. 106.-" Technical Assistance, Energy, Research, Reconstruc- 
tion, and Selected Development Problems. — (a) The President is 
authorized to furnish assistance, on such terms and conditions as he 
may determine, for the following activities, to the extent that such 
activities are not authorized by sections 108, 104, and 105 of this Act : 

(1) programs of technical cooperation and development, par- 
ticularly the development elTorts of United States private and 
volimtary agencies and regional and international development 
organizations ; 

(2) programs to help developing coimtries alleviate their 
energy problems by increasing their production and conservation 
of energy, through such means as research and development of 
suitable energ\^ sources and conservation methods, collection and 
analysis of information concerning countries' potential supplies 
of and needs for energv. and 7)ilot projects to test new methods 
of production or conservation of energy ; 

(3) prof^rams of research into, and evaluation of, the process 
of economic development in less developed countries and areas, 
into the factors aiTecting the relative success and costs of develop- 
ment activities, and into the means, techniques, and such other 
aspects of development assistance as the President may determine 
in order to render such assistance of increasing value and benefit ; 

(4) progi'ams of reconstruction following natural or manmade 
disasters ; 

(5) programs designed to help solve special development prob- 
lems in the poorest countries and to make possible proper utiliza- 
tion of infrastructure and related projects fimded with earlier 
United States assistance ; and 

(6) programs of urban development, with particular emphasis 
on small, labor intensive enterprises, marketing systems for sm.all 
producers, and financial and other institutions which enable the 
urban poor to participate in the economic and social development 
of their country. 

»Sec. 305(3) of Public Law 94-161 (89 Stat. S49) added subjections (b) and (c). 

2? 22 use 2151d. Sec. 306(1) of Public Law 94-161 (S9 Stat. S49) repealed Sees. 30f), 
107 and 241. Former Sec. 106 read as follows : "Sec. 106. Selected Development Problems. 
The President is authorized to furnish assistance on such terms and conditions as he 
may determine, to help solve economic and social development problems in fields such 
as tr.insportation, power, industry, urban development, and export development. Therp 
are authorized to be appropriatecl to the President for such purposes, $53,000,000 for ench 
of the fiscal years 1974 and 1975, which amounts are authorized to remain available 
until expended." 



18 



(b) There is autliorized to be appropriated to the President for 
the purposes of this section, in addition to funds other\Yise available 
for such purposes, $09,550,000 for the fiscal year 1976 and $104,500,000 
for the fiscal year 1977, which amounts are authorized to remain 
available untirexpended. Of the amounts made available under this 
section, not less than $30,000,000 shall be available during? the period 
beginning July 1, 1975, and ending September 30, 1977, only for 
rennbursement to private voluntary agencies of the United States for 
costs incurred ^Yith respect to the shipment of food and nonfood 
commodities provided through private donations. 

Sec. 107.'^ Intermediate Technology. — Of the funds made avail- 
able to carry out tliis chapter for tho fiscal yeors 197H, 1977, and 1978, 
a total of $20,000,000 may he used for activities in the field of inter- 
mediate technology, through grants in support of an expanded and 
coordinated private etTort to promote the development and dissemina- 
tion of technologies appropriate for developing countries. The Agency 
for International Development shall prepare a detailed proposal to 
carry out this section and shall keep the Senate Foreign Eeiations 
Committee and the House International Eeiations Committee fully 
and currently informed concerning the development of the proposal. 
The proposal shall be transmitted to these committees no later than 
March 31, 1976, and shall not be implemented until thirty days after 
its transmittal or until passage by each committee of a resolution in 
effect approving its implementation. 

Sec. 108.-^ Application of Existing Provision. — Assistance imder 
this cliapter shall be furnished in accordance with the provisions of 
titles I, II, or X of chapter 2 of this part, and nothing in this chapter 
shall be construed to make inapplicable the restrictions, criteria, au- 
thorities, or other provisions of this or any other Act in accordance with 
which assistance furnished under this chapter would otherwise have 
been provided. 

Sec. l{)9.-'° Transfer of Funds. — Xot withstanding section 108 of 
this Act, whenever the President determines it to be necessary for the 
purposes of this chapter, not to exceed 15 per centum of the funds made 
available for any provision of this cliapter m.ay be transferred to, and 
consolidated with, the funds made available for an}- other provision 
of this chapter, and may be used for any of the purposes for which 
such funds may be used, except that the total in the provision for the 
benefit of which the transfer is made shall not be increased by more 
than 25 per centum of the amount of funds made available for such 
provision. The authority of sections 610(a) and 614(a) of this Act 
may not be used to transfer funds made available under this chapter 
for use for purposes of any other provision of this Act. 



2«22 use 2ir)le. See. ?,nO(l) of Public Loav 04-101 (RO Rtnf. ropealpd Sees. 100. 

107 and 241. Former Sec. 107 reads as follows: "Sec. 107. Selected Countries aud Orfrani- 
zations.— The President is authorized to furnish assistance on such terms and conditions 
ns he may determine, in support of the preneral econom.y of reelpient countries or for 
deve'omnent projrrams coiulucted by nrivpto or int'^rnational orcranizations. There are 
authorized to he appropriated to Ihe President for the purposes of this section, in addi- 
tion to funds otherwise available ff>r such purposes, S30.000.000 for each of the fiscal years 
1074 and 1075. which aninnnts are authorized to remain available until expended."' 
=»22 T'SC 2ir,1f. Sec. lOS was added bv Sec. 2(r,) of the FAAct of 1073 
^22 UkSC 2151)?. Sec. 109 was added by Sec. 2(3) of the FAAct of 1073. 



19 



Sec. 110.^^ Cost-Sharing and Funding Limits.— (a) Xo assistance 
shall be furnished bv the United States Government to a countr}^ under 
sections 103 tlirough 107 of this Act until the country provides assur- 
ances to the President, and tlie President is satisfied, that such country 
provide at least 25 per centum of the costs of the entire program, proj- 
ect, or activity with respect to which such assistance is to be furnished, 
except that such costs borne by such country may be provided on an 
''in-kind"' basis and exce]:>t that the President may waive this cost- 
sharing requirement in the case of a project or activity in a country 
which the agency primarily responsible for administering part I of 
this Act determines is relafively least developed Ixised on tlie United 
Nations Conference on Trade* and Development list of ^'relatively 
least developed countries''.'- 

(b) No grant assistance shall be disbursed by the United States Gov- 
ernment under sections lO:^ through 107 of tliis Act for a project, for 
a period exceeding t]iirty-six consecutive months, without further jus- 
tification satisfactory to'the Congress and elforts being made to obtain 
sources of financing'within that country and from other foreign coun- 
tries and niultihiteral organizations. 

Sec. 111.^ Development and Use of Cooperatives. — In order to 
strengthen the paiticipation of tlie rural and urban poor in their 
country's development, high priority shall be given to increasing the 
use of funds made available under this Act for assistance in the 
development of cooperatives in the less developed countries which will 
enable and encouraire jireater numbers of the poor to help themselves 
toward a better life. Not less than S'20.000.000 of sucli fund? shall be 
used during tlie fiscal years 197G and 1977, including the period from 
eluly 1, 197(), through September 30, 197G, only for technical assistance 
to carry out tlie purposes of this section. 

Sec. 112.^' Prohibiting Police Training.— * * [Repealed— 1974] 

Sec. 113.'- Integrating Women Into National Economies.— Part 
I of this Act shall be administered so as to give particular attention 
to those ])rogTams, projects, and activities which tend to integrate 
women into the national economies of I'oi-eign countries, thus improv- 
ing their status and assisting the total development eii'ort. 

Sec. 114.3' Limiting Use of Funds for Abortions. — None of the 
funds made available to carry out this part shall be used to pay for the 
performance of abortions as a method of family planning or to moti- 
vate or coerce any person to practice abortions. 

3122 use 2151h. Sec. 110 was added by Sec. 2(3) of the FAAct of 1973. See first Note 
in box, page ] .3. 

^The words to this point commencing with "and except that the President may 
waive * * *" were added by L-ec. 307 of Public Law 9-4-lGl (89 Stat. 849). 

3S22 use 21511. Sec. 111. which was odded by Sec. 2(3) of the FAAct of 1973. was 
amended by Sec. SOS of Public Law 94-161 (89 Stat. 849). It formerly read as follows: 
"In order to strengthen the participation of the urban and rural poor in their country's 
development, not less than S20.000.000 of the funds made available for the purposes of this 
chapter shall be available during the fiscal year 1974 and 1975 only for assistance in the 
less developed countries which will enable and encourage greater numbers of tlie poor to 
help themselves toward a better life." 

3* Sec. 132. which was added by Sec. 2(3) of the FAAct of 1973, was repealed bv Sec. 
30(b) of the FAAct of 1974. (See Sec. 660 of this Act. "Prohibiting Police Training", 
p. 141.) 

35 22 use 2251k. Sec. 113 was added by Sec. 2(3) of the FAAct of 1973. (See Sec. 305 
of this Act. "Integration of Women", p. 66.) 

»5 Sec. 309 of Public Law 94-161 (89 Stat. 849) substituted the words "Part I" in lieu 
of the Avords "Sections 103 throucrh 107"'. 

3' 22 use 21511. Sec. 114 was added by Sec. 2(3) of the FAAct of 1973. 



20 



Sec. 1,15.^^ Prohibiliiig Use of Funds for Certain Countries. — 

(a) None of the funds made available to carry out this chapter may 
be used in any fiscal year for any country to which assistance is fur- 
nished in such fiscal year under chapter 4 of part II (security sup- 
porting assistance), part Y (assistance for relief and reconstruction 
of South Vietnam, Cambodia, and Laos), part VI (assistance for 
]\Iiddle East peace) of this Act, or section 36 of the Foreign Assistance 
Act of 1974. 

(b) The prohibition contained in subsection (a) may not be waived 
under section 614(a) of this Act or under any other provision of law. 

(c) This section shall not apply to funds made available under 
section 104 for purposes of title X of chapter 2 of this pait (programs 
relating to population growth) , funds made available for humanitar- 
ian assistance through international organizations, and funds obli- 
gated for regional programs. 

Sec. 116.^^ Human Rights. — (a) Xo assistance may be provided 
under this part to the government of any country which engages in a 
consistent pattern of gross violations of internationally recognized 
human rights, including torture or cruel, inhuman, or degrading treat- 
ment or punishment, prolonged detention without charges, or other 
flagrant denial of the right to life, liberty, and the security of person, 
unless such assistance will directly benefit the needy people in such 
country. 

(b) In determining whether this standard is being met with regard 
to funds allocated under this part, the Committee on Foreign Rela- 
tions of the Senate or the Committee on International Relations of the 
House of Representatives may require tlie Administrator primarily 
responsible for administering part I of this Act to submit in writing 
information demonstrating that such assistance will directly benefit 
the needy people in such country, together with a detailed explana- 
tion of the assistance to be provided (including the dollar amounts of 
such assistance) and an explanation of how such assistance will di- 
rectly benefit the needy people in such coimtr}'. If either committee or 
either House of Congress disagrees with the Administrator's justi- 
fication it may initiate action to terminate assistance to any country 
by a concurrent resolution under section 617 of this Act. 

(c) In determining whether or not a government falls within the 
provisions of subsection (a), consideration shall be given to the extent 
of cooperation of such government in permitting an unimpeded investi- 
iration of alleged violations of internationally recoirnized hum on riirhts 
bv aopropriate international organizations, including the Interna- 
itonal Committee of the Red Cross, or groups or persons actincr under 
the authority of the United Nations or of the Organization of Ameri- 
can States. 

(d) The President shall transmit to the Speaker of the House of 
Representatives and the Committee on Foreign Relations of the Sen- 
ate, in the annual presentation materials on proposed econom.ic devel- 
opment assistance programs, a full and complete report recrarding the 
steps he has taken to carry out the provisions of this section. 



3,9^ r^r 215lTn. Rpo. 115 was nrlflpfl bv Soc. 20 of tli^ FAAft of 1074. 

«»22 use 2l51n. Sec. 116 waf? added by Sec. 310 of Public Law 94-161 (89 Stat. S49). 



21 



Chapter 2 — Development Assistance 



Title I — Development Loan Fund 

Sec. 201.^° General Authority. — (a) The President shall estahlish 
a fund to be known as the "Development Loan Fund'' to be used by 
the President to make loans pursuant to the authority contained in 
this title. 

(b) The President is authorized to m.ake loans payable as to princi- 
pal and interest in United States dollars on such terms and conditions 
as he may determine, in order to promote the economic development 
of less developed friendly countries and areas, vrith emphasis upon 
assistin^^ long-range plans and programs designed to develop eco- 
nomic resources and increase productive capacities. In so doing, the 
President shall take into account (1) whether fmancing could be 
obtained in whole or in part from other free-world sources on reason- 
able terms, including private sources within the United States, (2) 
the economic and technical soundness of the activity to be financed, 
including the capacity of the recipient country to repay the loan at a 
reasonable rate of interpst,"*^ (3) whotii^^r the activity give? reasonable 
promise of contributing to the development of economic resources 
or to the increase of productive capacities in furtherance of the pur- 
poses of this title, (4) the consistency of the activity with, and its 
relationship to, other development activities being undertaken or 
planned, and its contribution to realizable long-range objectives, (5) 
the extent to which the recipient country is showing a responsiveness 
to the \4tal economic, political, and social concerns of its people, and 
demonstrating a clear determination to take effective self-help meas- 
ures.^- (6) tlie possible elferts upon t\\9 T'nited States ocoiiomy, with 
spocial reference to areas of substantial labor surplus, of the loan in- 
volved, (7) the degree to which the recipient country is making prog- 
ress toward respect for the rule of law, freedom of expression and of 
the press, and recognition of the importance of individual freedom, 
initiative, and private enterprise, (8) the degree to which the re- 
cipient country is taking steps to improve its climate for private 
investment, and (9) whether or not the activity to be financed will 
contribute to the acliievement of solf-sustninin.2: growth,*^ I>oans shall 
be made under this title only upon a finding of rensonable prospects 
of repayment. Funds made available under this title, except funds 
made available pursuant to section 205, shall not be used to make 
loans in more than tvs-enty countries in any fiscal year.^^ 

«'22 use 21 Gl. 

« Sec. 102^a)(l) of the FAAct of 1963 amended clauses (1) and (2), whioh formerly 
read as folloAvs : "(1) whether financing could be obtained in whole or in part from other 
free-world sources on reasonable terms, (2) the economic and technical soundness of the 
activity to be financed." 

*-See. 102(a)(1) of the FAAct of 1966 struck out "and" at the end of clause (o), sub- 
stituted the comma for a period at the end of clause (6), and added clauses (7), (8) and 
(9). Roe also Sees. 211(a). 2.11(b) (4) and G04(a) of this Act. 

"The last sentence, wh:ch was added by Sec. 102(a)(2) of the FAAct of 1966, was 
amended by Sec. 102(a) of the FAAct of 1967. It formerly read as follows: "Funds made 
available under this title, except funds made available pursuant to section 205, shall not 
be used to riake loans in more than ten countries in any fiscal year, except that such loans 
may be m.ade in any additional country after at least thirty days shall have elapsed follow- 
insr the sul^mission by the President to the Committee on Foreign Relations of the Senate 
and the Speaker of the House of T^ppresentatives of a report stntinsr that the makingr of 
loans in such additional countrv during such fiscal .vear is in the national interest and 
giving his reasons therefor." Sec. 205 was repealed in 1972. 



22 



(c) The authority of section 610 may not be used to decrease the 
funds available under this title, nor may the authority of section 
614(a) be used to waive the requirements of this title. 

(d) Funds made available for this title shall not be loaned or re- 
loaned at rates of interest excessive or unreasonable for the borrower 
and in no event shall such funds (except funds loaned under section 
205 and funds which prior to the date of enactment of the Foreign 
Assistance Act of 196S ^'^ were authorized or committed to be loaned 
upon terms which do not meet the minimum terms set forth herein) be 
loaned at a rrte of interest of less than 8 per centum per an'ium com- 
mencing: not later than ten years following the date on which the funds 
are initially made available under the loan, during which ten-year 
period the rate of interest shall not be lower than 2 per centum per 
annum, nor ^" hicfher than the applicable legal rate of interest of the 
country in which the loan is made. 

(e) "^^ In carrying out this title, the President shall not allocate, re- 
serve, earmark, commut, or otherwise set aside, funds aggregating in 
excess of $100,000 for use in any country under this title unless (1) an 
application for such funds has been received for use in such country 
together with sufficient information and assurances to indicate reason- 
ably that the funds will be used in an economically and technically 
sound manner, or (2) the President determines with respect to each 
such allocation, reservation, earmarking, commitment, or set-aside that 
it is in the national interest to use such funds pursuant to multilateral 
plans. 

(f l\o assistance shall be furnished under this title for a project 
unless the President determines that such project will promote the eco- 
nomic development of the requesting country, taking into account the 
current human and material resource requirements of that co-untr}- and 
the relationshijD between the ultimate objectives of the project and the 
overall economic development of the country, and that such project 
specifically provides for appropriate participation by private 
enterprise. 

Sec. 202.^" Authorization. — (a) There is hereby authorized to be 
appropriated to the President for the purposes of this title $685,000,000 
for the fiscal vear 1967,^^ $450,000,000 for the fiscal year 1968,2^ $350,- 
000.000 for the fiscal vear 1969,^^ s350.OOO.OO for the fiscal vear 1970, 
$350,000,000 for the fiscal year 1971,^-^ $250,000,000 for the fiscal year 
1972, and $250,000,000 for 'the fiscal year 1973,^^ which sums shall re- 



" Sec. 101(a) (1) of the FAAct of 196S substituted "196S" in lieu of "1967". 
The words "3 per centum" were substituted in lieu of "2V-^ per centum" bv Sec. 101 
(a) (2) of the FAAct of 1968. 

^« Sec. 102(b) of the FAAct of 1967 substituted "2 per centum" in lieu of "1 per centum". 
Except as indicated in the preceding three footnotes, the words to this point, begin- 
ning immediately after "in no event" were added bv Sec. 102(a) (2) of the FAAct of 1963. 
<^ Subsection (e) was added bv Sec. 102 of the FAAct of 1962. 
*o Subsection (f) was added by Sec. 102(a) (3) of the FAAct of 19G3. 
so 22 use § 2162. 

^ Sec. 101 (b)(1) of the FAAct of 1968 substituted the comma for the word "and", which 
appeared at this point. 

-Sec. 101(a)(1) of the FAAct of 1969 struck out the word "and", which appeared at 
this point. 

^••'The words "and $350,000,000 for the fiscal year 1969," were added by Sec. 101(b)(2) 
of the FAAct of 1969. 

"* The words "?3r»0.000.n00 for the fiscal year 1970, and $350,000,000 for the fiscal year 
1971" wo-e added bv Sec. 101(a) (2) of the FAAct of 1969. 

^'^The words "$350,000,000 for the fiscal year 1971. ?;250.000,000 for the fiscal vear 
1972. and $250,000,000 for the fiscal year 1973" were substituted in lieu of "and 
$350.000.000' for the fiscal year 1071" by Sec. 101(a) (1) of the FAAct of 19V1. 

FA Appronriation Act. 1972 : "$200,000,000 together with such amounts as are provided 
for under section 203, all such amounts to remain available until expended." 



23 



main available until expended : Provided^ That any unappropriated 
portion of the amount authorized to be appropriated for any such 
fiscal year may be appropriated in any subsequent fiscal year during 
the above period in addition to the amount otherwise to be appropri- 
ated for such subsequent fiscal year : Provided further^ That, in order 
to effectuate the purposes and provisions of sections 102, 201, 601, and 
602 of this Act, not less than 50 per centum of the funds appropriated 
pursuant to this subsection for each of the fiscal years ending J une 30, 
1970, June 30, 1971, June 30, 1972, and June 30, 1973,^*^ shall be avail- 
able for loans made to encouraiie economic development through 
private enterprise.^" 

(b) AVhenever the President determines that it is important to the 
advancement of United States interests and necessary to further the 
purposes of this title, and in recognition of the need for reasonable 
advance assurances in the interest of orderly and effective execution 
of long-term plans and programs of development assistance, he is au- 
thorized to enter into agreements committing, under the terms and 
conditions of this title, funds authorized to be appropriated under this 
title, subject only to the annual appropriation of such funds. 

(c) Upon conclusion of each such agreement involving funds to be 
appropriated, the President shall notify the Foreign Relations and 
Appropriations Committees of the Senate and the Speaker of the 
KU)use of Representatives of the provisions of such agreement, includ- 
ing the amounts of funds involved and undertakings of the parties 
thereto.^^ 

(d) Except as otherwise provided in this part, the United States 
dollar assets of the corporate entity known as the Development Loan 
Fund which remain unobligated and not committed for loans repayable 
in foreign currencies on the date prior to the abolition of such Fund 
shall be available for use for purposes of this title. 

Sec. 203.-^^ Fiscal Provisions. — Xot more tlian 50 per centum of 
dollar receipts scheduled to be paid during each of the fiscal year 1974 
and 1975 from loans made pursuant to this part and .from loans made 
under predecessor foreign assistance legislation are authorized to be 
made available for each such fiscal j^ear for use for purposes of making 
loans under chapter 1 of this part. Such receipts shall remain available 
until expended. 

On and after July 1, 1975, none of the dollar receipts paid during 
any fiscal year from loans made pursuant to this part or from loans 
made under predecessor foreign assistance legislation are authorized 
to be made available during any fiscal year for use for purposes of 
making loans under chapter 1 of this part. All such receipts shall be 
deposited in the Treasury as miscellaneous receipts.*^^ 

=''SSoc. 101(a) (2) of the FAAct of 1071 substituted the words "June 30, 1971, June 30, 
1072. and June 30. 1978" in lieu of "and June 30. 1971". 

Except as indicated in previous footnote, the second proviso was added by Sec. 102 
(b) (2) of the FAAct of 1063. 

•'•8 For other reports required to be submitted to Congress, see Reports to Congress. Index. 

59 use 21G3. See. 203 was amended by Sec. 3(a) of the FAAct of 1973. It formerly read 
as follow*? : 

"Sec. 203. Fiscal provisions. — Dollar receipts from loans made pursuant to this part 
and from loans made under the Mutual Security Act of 19.54, as amended, are authorized to 
be made available for the fiscal year 1970. for the fiscal year 1971. for the fiscal year 1972, 
and for the fiscal year 1973 for use for the purposes of this title, for loans under title VI, 
and for the purposes of section 232. Such receipts and other funds made available under 
thi': section shall remain available until expended." 

5° Sec. 6 of the FAAct of 1974 added the last two sentences beginning with the words 
"On and after July 1, 1975, * * *" 



Sec, 201/^^ Development Loan Committee. — The President sliall 
establisli' i]iterao-encY Development Loan Committee, consisting of 
such ofiicers from such agencies o,f the United States Government as he 
may determine, which shall, under the direction of the President, estab- 
lish standards and criteria for lending operations under this title in 
accordance with the foreign and financial policies of the United 
States.^- Except in the case of officers serving in positions which they 
were appointed by the President by and with the advice and consent of 
the Senate, officers assigned to the Committee shall be so assigned by 
the President by and with the advice and consent of the Senate. 

Sec. 205.^^ (Eelatin.fr to transfers to international fmancial institu- 
tions) [ReperJed— 1972]. 

Sec. 206.^* Regional Development in Africa. — The President is 
requested to seek and to take appropriate action, in cooperation and 
consultation with African and other interested nations and with inter- 
national development organizations, to further and assist in the ad- 
vancement of African regional development institutions, including the 
African Development Bank, with the view toward promoting African 
economic development. 

Sec. 207.^^ Purposes of Development Assistance. — In furnishing 
development assistance under this chapter the President shall place 
appropriate emphasis on — 

(a) assuring maximum participation in the task of economic 
development by the people of less developed countries through 
the encouragement of strong economic, political, and social insti- 
tutions needed for a progressive democratic society ; 

(b) progTams directed at enabling a country to meet the food 
needs of its people from its own resources, including the furnish- 
ing of technical knowledge and of resources necessar}^ to increase 
agricultural productivity ; assistance for improved storage, trans- 
portation, marketing, and credit facilities (including provision 
for foreign currency loans to small farmers), cooperatives, water 
conservation programs, and adaptive research programs; and 
technological advice : Provided^ That relief from the immediate 
threat of famine, hunger, and malnutrition may be provided by 
the United States and other countries, and that assistance pro- 
vided under the Agricultural Trade Development and Assistance 
Act of 1954, as araended,^^ should complement assistance furnished 
under this Act ; 

(c) assisting recipient countries in their efforts to meet increas- 
ing needs for trained manpower in their development efforts by 
improving education planning and research, training teachers and 
administrators, developing and constructing educational institu- 
tions, and using modern educational technology ; 

(d) developing programs to combat malnutrition, to control 
and eradicate disease, to clear slums, and to provide adequate and 
safe drinking water, adequate sev/age disposal systems, overall 

61 22 use 21G4. 

Spp nis-o Sec. 305 of Executive Orrler 10973, pacre 235. 
as Soction 205, which rolatefl to transfers to internatiorxal financial institutions, was 
repenlofl hv Sec. lOKd) of the FAAct of 1971. 

c< 22 TTSC § 21 no. Sec. 200 was added by Sec. 102(b) of the FAAct of 1065. 

22 use § -2107. Sec. 207 was added by Sec. 102(e) of the FAAct of 1967. 

For text, see page 284. 



25 



health educcation, maternal and child care, and voluntary family 
planning services which shall, wliere feasible, be included as part 
of programs of maternal and child care, and other public health 
assistance; and 

(e) other important development activities including assistance 
for programs to assist industrial development; the growth of free 
labor unions, cooperatives, and voluntary agencies ; improvement 
of transportation and communication systems; development of 
capabilities for sound economic planning and public administra- 
tion ; urban development ; and modernization of existing laws to 
facilitate economic development. 
Sec. 208."^ Se!f-He!p Criteria. — In determining whether and to 
what extent the United States should furnish development assistance 
to a country under this chapter the President shall take into account — 

(a) the extent to which the count i-y is taking such measures as 
may be appropriate to its needs and capabilities to increase food 
production and improve the means for storage and distribution 
of food; 

(b) the extent to which the country is creating a favorable 
climate for private enterprise and investment, both domestic and 
foreign ; 

(c) the extent to which the government of the country is in- 
creasing the role of the people in the developmental process ; 

(d) the extent to which the country's governmental expendi- 
tures are allocated to key developmental areas, including agricul- 
ture, health, and education, and not diverted for unnecessary mili- 
tary purposes or to intervention in the affairs of other free and 
independent nations ; 

(e) the extent to which the country is willing to make contribu- 
tions of its ovv'n to the projects and programs for which the assist- 
ance is provided ; 

(f ) the extent to which the country is making economic, social, 
and political reforms, such as tax collection improvements and 
changes in land tenure arrangements, that will enable it to achieve 
developmental objectives more efficiently and justly; and 

(g) the extent to which the country is otherwise showing a 
responsiveness to the vital economic, political, and social concerns 
of its people, and demonstrating a clear determination to take 
e:ffective self-lielp measures. 

Sec. 209.^^ Multilateral and Regional Programs. — (a) The Con- 
gress recognizes that the planning and administration of developm.ent 
assistance by, or under the sponsorship of the United Nations, multi- 
lateral lending institutions, and other multilateral organizations may 
contribute to the efficiency and effectiveness of that assistance through 
participation of other donors in the development effort, improved co- 

«• use § 2168. See. 208 was added I)y See. 101 (e) of the FAAct of 1967. 

«8 22 use § 2169, Sec. § 209 was added by See. 102(e) of the FAAct of 1967. Sec. 101 
(c)(1) of the FAAct of 1971 amended subsection (a), which formerly read as follows: 
^ "(a) Multilateral Programs. — The Congress recognizes that planning and administra- 
tion of development assistance by. or under the sponsorship of. multilateral lending institu- 
tions and other international organizations may, in some instances, contribute to the 
efficiency and effiectiveness of that assistance through participation of other donors in the 
development effort, improved coordination of policies and programs, pooling of knowledge, 
avoidance of duplication of facilities and manpower, and greater encouragement of self-help 
performance." 



26 



ordination of policies and programs, pooling of knowledge, avoidance 
of duplication of facilities and manpower, and greater encouragement 
of self-help performance. 

(b) It is further the sense of the Congress ( 1 ) that where problems 
or opportunities are common to two or more countries in a region, in 
such fields as agriculture, education, transportation, communications, 
power, watershed development, disease control, and establishment of 
development banks, these countries often can more effectively resolve 
such problems and exploit such opportunities by joining together in 
regional organizations or working together on regional programs, 
(2) that assistance often can be utilized more efficiently in regional 
programs than in separate country programs, and (3) that to the 
maximum extent practicable consistent with the purposes of this Act 
assistance under this Act should be furnished so as to encourage less 
developed countries to cooperate with each other in regional develop- 
ment programs. 

(c) ^° It is the sense of the Congress that the President should 
increase, to the extent practicable, the funds provided by the United 
States to multilateral lending institutions and multilateral organiza- 
tions in which the United States participates for use by such institu- 
tions and organizations in making loans to foreign countries. 

(d) ^^ In furtherance of the provisions of subsection (a) of this sec- 
tion, any funds appropriated imder this part I may be transferred by 
the President to the International Development Association, the Inter- 
national Bank for Reconstruction and Development, the International 
Finance Corporation, the Asian Development Bank or other Multi- 
lateral lending institutions and multilateral organizations in which 
the United States participates for the purpose of providing funds to 
enable any such institution or organization to make loans to foreign 
countries. 

Title II — Technical Cooperation and Development Grants 

Sec. 211." General Authority. — (a) The President is authorized 
to furnish assistance on such terms and conditions as he may determine 
in order to promote the economic development of less developed friend- 
ly countries and areas, with emphasis upon assisting the development 
of human resources through such means as programs of technical 
cooperation and development. In so doing, the President shall take 
into account (1) whether the activity gives reasonable promise of con- 
tributing to the development of educational or other institutions and 
programs directed toward social progress, (2) the consistency of the 
activity with, and its relationship to, other development activities 
being undertaken, or planned, and its contribution to realizable long- 

6» The words "Refrionnl Proprrnms. — ", which appeared at this point, were struck out 
by spo. 101 fc) (3) of the FAAct of 1071. 

™ Subsection (c). which was added bv Sec. 101(c)(2) of the FAAct of 1971. was 
amended by Sec. 811 of Tublic Law 94-161 (89 Stat. 849). It formerly read as follows: 
"Xotwithstnndinji: any other provision of law. the President should reduce the amounts and 
numbers of loans made by the United States directly to individual foreign countries with 
the objective of reducine: the total nmount of bilateral loans made under this Act so that, 
by not later than June HO, 1975. such total amount shall not exceed $100,000,000." 

'1 Subjections (c) and (d) were added by Sec. 101(c)(2) of the FAAct of 1971. Sec. 110 
of the FA Approiu'iation Act, 1975, prohibits the use of funds contained in title I of that 
Act to carry out the provisions of sections 209 fd) and 251(h) of this Act. 

"2 Spp. l02Cn) of the FAAct of 19fl4 amended the title headinc-. which formerly read: 
"TTTT.F IT— DFVELOPATFXT (; RANTS AND TECHNICAL COOPERATION". 

'3 22 use § 2171. 



27 



range development objectives, (3) the economic and teclmical sound- 
ness of the activity to be financed, (4) the extent to which the recipient 
comitry is showing a responsiveness to the vital economic, political, 
and social concerns of its people, and demonstrating a clear determi- 
nation to take etfective self-help measures and a willingness to pay 
a fair share of the cost of programs under this title, (5) the possible 
adverse effects upon the United States economy, with special reference 
to areas of substantial labor surplus, of the assistance involved,'^ (6) 
the desirability of safeguarding the international balance of pay- 
ments position of the United States, (7) the degree to which the re- 
cipient country is making progress toward respect for the rule of law, 
freedom of expression and of the press, and recognition of the im- 
portance of individual freedom, initiative, and private enterprise, and 
(8) whether or not the activity' to be financed will contribute to the 
achievement of self-sustaining growth. If the President finds that 
assistance proposed to be furnished under this title would have a sub- 
stantially adverse effect upon the United States economy, or a sub- 
stantial segment thereof, tiie assistance shall not be furnished.'^ The 
authority of this title shall not be used to furnish assistance directly 
to more than forty countries in any fiscal year, except that up to 
$600,000 may be used for self-help projects in additional countries dur- 
ing such fiscal yeai'.' * 

(b) In countries and areas which are in the earlier stages of eco- 
nomic development, programs of development of education and human 
resources througli such means as technical cooperation shall be empha- 
sized, and the furnishing of capital facilities for purposes other than 
the development of education and human resources sliall ])e given a 
lower priority until the recjuisite knowledge and skills have been 
developed. 

(c) '* Xot to exceed $1,000,000 of the funds made available for the 
purposes of this section in any fiscal year may be used for programs 
designed to promote the peaceful uses of atomic energy outside the 
United States and such programs may be carried out only in accord- 
ance with the recjuirements of this section. 

(d) Xot to exceed 810,000,000 of funds made available in any fiscal 
3'ear under section 212, or under section 252 (other than loan funds), 
may be used for assistance, on such terms and conditions as tlie Presi- 
dent may specify, to research and educational institutions in the 
United States for the purpose of strengthening their capacity to de- 
velop and carry out programs concerned with the economic and social 
development of less developed countries. 

(e) In any developing countries or areas where food production is 
not increasing enough to meet the demands of an expanding popula- 



•*Sec. 103(a)(1) of the FAAct of 19GG struck out "and" at the end of clause (5). sub- 
stituted the comma for a period at the end of clause (6), and added clauses (7) and (8). 
■5 See also Sees. 201 fb) ( 6) , 237 (k) and 604(a) of this Act. 
•6 Sec. 4ri) of the FAAct of 1973 inserted the word "directly". 

"^The last sentence was added by Sec. 103(a)(2) of the FAAct of 1966. Sec. 103(a) of 
the FAAct of 1967 amended the last sentence by substituting the words beginning with 
"except that up to" in lieu of "except that such assistance may be furnished to any addi- 
tional country after at least thirty days shall haye elapsed following the submission by 
the President to the Committee on Foreign Relations of the Senate and the Speaker of 
the House of Representatiyes of a report stating that the furnishing of assistance to such 
additional country during such fiscal year is in the national interest and giving his reasons 
therefor." 

Subsection (c) was added by Sec. 103(a) of the FAAct of 1962. 
■^Subsections (d) and (e) were added bv Sec. 103(a)(3) of the FAAct of 1966. 
^The words "in any fiscal year" were added by Sec. 102(a) of the FAAct of 1968. 



28 



tion, or diets are seriously deficient, a high priority shall be given to 
efforts to increase agricultural production, particularly the establish- 
ment or expansion of adaptive research programs designed to increase 
acre-yields of the major food crops. Such research programs, to the 
greatest extent possible, should be based on cooperative undertakings 
between universities and research institutions in the developing coun- 
tries and United States universities and research institutions. 

Sec. 212.^^ Aiitliorizatioiio — To carry out the purposes of section 
211, there is authorized to be appropriated to the President $175,000,- 
000 for the fiscal year 1972, and $175,000,000 for the fiscal year 1973,^2 
which amounts are authorized to remain available until expended. 
Sec. 213.83 Atoms for Peace. * * * [Repealed— 1962] 
Sec. 214.^* American Schools and Hospitals Abroad. — (a) The 
President is authorized to furnish assistance, on such terms and 
conditions as he may specify, to schools and libraries outside the 
United States founded or sponsored by United States citizens and 
serving as study and demonstration centers for ideas and practices of 
tlie United States. 

(b) The President is authorized,^^ notwithstanding the provisions of 
the Mutual Defense Assistance Control Act of 1951 (22 TJ.S.C. 1611 
et seq.)^^ to furnish assistance, on such terms and conditions as he 
may specify, to institutions referred to in subsection (a) of this sec- 
tion, and to hospital centers for medical education and research out- 
side the United States, founded or sponsored by United States 
citizens.^^ 

(c) ^° To carry out the purposes of this section, tliere are authorized 
to be appropriated to the President for each of the fiscal years 1974 



8122 use § 2172. Sec. 103(b) of the FAAct of 19G7 amended Sec. 212, which formerly 
read as follows : "There is hereby authorized to be appropriated to the President for use 
bcsrinning in the fiscal year 1967 to carry out the purposes of section 211 not to exceed 
.?210, 000.000, which shall remain available until expended." 

82 Sec. 102(a) of the FAAct of 1971 substituted the words ".$175,000,000 for the fiscal 
vear 5 972, and !i:i75.000,000 for the fiscal year 197.3" in lieu of ".$183,500,000 for the fiscal 
year 1970, and $183,500,000 for the fiscal year 1971". 

FA Appropriations Act, 1972 : "?160, 000,000 : Provided, That no part of this appropria- 
tion shall be used to initiate any project or activity which has not been justified to the 
Congress." 

Sec. 103(c) of the FAAct of 1962 struck out former Sec. 213, which related to atoms 
for peacp. 

8* 22 use § 2174. 

85 Sec. 103(b)(1) of the FAAct of 1963 substituted the word "furnish" for the words 
"use, in addition to other funds available for such purposes, funds made available for the 
purposes of Section 211 for". 

^ Sec. 103(b) (2) of the FAAct of 1963 struck out the words "to use" which appeared at 
this noint. 

8" For text, see page 215. 

88 See. 103(b) (2) of the FAAct of 1963 substituted the words "to furnish" for the words 
"foreign currencies accruing to the United States Government under any Act, for purposes 
of subsection (2) of this section, and for". 

8»Sec, 103(c)(1) of the FAAct of 1966 substituted the words to this point, beginning 
with "to institutions referred to" in lieu of "to hospitals outside the United States founded 
or sponsored by United States citizens and serving as centers for medical education and 
research". 

eoSec. 4(2) of the FAAct of 1973 substituted subsections (c), (d) and (e) in lieu of 
subsections (c) and (d), which formerly read : 

"(c) There is hereby authorized to be appropriated to the President for the purposes 
of this section, for the fiscal year 1972, .$.30,000,000 nnd for the fiscal year 1973, 
?:'.0.000.000 which amounts are authorized to remain available until expended. Amounts 
appropriated under this subsection for the fiscal year 1970 shall be available for expendi- 
t'lres solely in accordance with the allocations set forth on pages 25 and 26 of House 
Report No. 91-611 and on page 23 of Senate Report No. 91-603. 

"(d) There Is authorized to be appropriated to the President for the purposes of section 
214(b), in addition to funds otherwise available for such purposes, for the fiscal year 1970, 
$3,000,000 in foreign currencies which the Secretary of the Treasury determines to be excess 
to the normal, requirements of the United States. Foreign currencies appropriated under 
this subsection shall be available for expenditure solely In accordance with the allocation 
set forth on page 23 of Senate Report No. 91-603." 



29 



and 1075 $19,000,000,^^ and for each of the fiscal years 107-3 and 1977, 
$25,000,000,^- which amounts are authorized to remain available until 
expended. 

(d) These are authorized to be appropriated to the President to 
carry out the purposes of this section, in addition to funds otherwise 
available for such purposes, for each of the fiscal years 1974 and 1975 
$6,500,000 ^2 and for each of the fiscal years 1976 and 1977, $7,000,000,^^ 
in foreif^n currencies ^^•hicli the Secretary of the Treasury determines 
to be excess to the normal requirements of the United States. 

(e) ^^ Not later tlian Juno 30, 1974, the Secretary of State shall sub- 
mit to the Congress such recommendations (including recommenda- 
tions concerning which agency of the United States Government 
should administer such assistance) as he considers desirable for assist- 
ance to schools, libraries, and hospital centers for medical education 
and research, outside the United States, founded or sponsored by 
United States citizens and serving as study and demonstration centers 
for ideas and pj-actices of the United States. 

Sec. 215.^^ Loans to Small Farmers. — It is the policy of the 
United States and the purpose of this section to strengthen the econo- 
mies of less developed friendly countries, and in friendly countries 
where the economy is essentially rural or based on small villages, to 
provide assistance designed to improve agricultural methods and tech- 
niques, to stimulate and encourage the development of local programs 
of self-help and mutual cooperation, particularly through loans of 
foreign currencies for associations of operators of small farms, formed 
for the purpose of joint action designed to increase or diversify agri- 
cultural productivity. The maximum unpaid balance of loans made to 
any association under this section may not exceed $25,000 at any one 
time; and the aggregate unpaid balance of all loans made under this 
section may not exceed $10,000,000 at any one time. 

Sec. 216.^'' Voluntary Agencies. — (a) In order to further the 
efficient use of United States voluntary contributions for relief and 
rehabilitation of friendly peoples, the President is authorized to use 
funds made available for the purposes of section 211 to pay transpor- 
tation charges from United States ports or, in the case of excess or 
surplus property supplied by the United States, from foreign ports 
to ports of entry abroad, or, in the case of landlocked countries, to 
points of entry in such countries, on shipments by the American Red 
Cross and United States voluntary nonprofit relief agencies registered 
with and approved by the Advisory Committee on Voluntary Foreign 
Aid. 

(b) Where practicable the President shall make arrangements with 
the receiving country for free entry of such shipments and for the 
making available by the country of local currencies for the purpose of 

»i FA Appropriation Act, 1975 : $17,500,000. 

»2Tlie words to this point commencing with "and for each of the fiscal years 197G * * *" 
were added by Sec. 311(2) (A) of Public Law 94-161 (89 Stat. 849). 

FA Appropriation Act, 1975 : "$6,500,000 in foreign currencies which the Treasury 
Department determines to be excess to the normal requirements of the United States, to 
remain available until expended". 

The words to this point commencing with "and for each of the fiscal years 1976 * * *" 
were added by Sec. 311(2) (B) of Public Law 94-161 (89 Stat. 849). 
22 use 2175. 
««22 use 2176. 

97 The words to this point, beginning with "or, in the case of" were added by Sec. 102(d) 
of the FAAct of 1964. 



30 



defraying the transportation cost of sucli shipments from the port of 
entry of' the receiving country to the designated shipping point of the 
consignee. 

Sec. 217.^^ Used Equipment. — The President is authorized to use 
funds made available for the purposes of section 211 to conduct a study 
and investigation to determine the feasibility of establishing programs 
for the furnishing to less developed friendl}^ countries and areas of 
used tools, machinery, and other equipment to be donated by private 
enterprises, or acquired through normal channels of trade, and the 
extent to which such programs are likely to be utilized by and con- 
tribute to the economic development of the receiving country. The 
President shall submit to the Congress at the earliest practicable date 
a report of the result of such study and investigation, together with 
such recommendations for legislation as he deems advisable.^^ 

Sec. 218.i«« Fish and Other Protein Concentrates.— (a) The 
President is authorized to conduct a program designed to demonstrate 
the potential and to encourage the use of fish and other protein concen- 
trates as a practical means of reducing nutritional deficiencies in less 
developed countries and areas. This program shall include — 

( 1 ) studies and activities relating to food technology ; 

(2) development of suitable marketing techniques ; 

(3) development of consumer acceptance programs; and 

(4) feeding programs designed to demonstrate the nutritional 
value of fish and other protein concentrates as a diet supplement. 

In carrying out his functions under this section, the President shall 
consult with the National Council on Marine Eesources and Engineer- 
ing Development, appropriate Government agencies and other such 
technical groups or agencies as may be helpful with such activities. In 
accordance with section 601(b) of this Act, the President shall en- 
courage full participation in such program by United States private 
enterprise. 

The President is authorized to use funds made available under 
this part for the purposes of this section, and is urged to use at least 
$2,500,000 of such funds for such purposes. 

Sec. 219.^°^ Prototype Desalting Plant. — (a) In furtherance of the 
purposes of this part and for the purpose of improving existing, and 
developing and advancing new technology and experience in the 
design, construction, and operation of large-scale desalting plants of 
advanced concepts which will contribute materially to low-cost de- 
salination in all countries, including the United States, the President, 
if he determines it to be feasible, is authorized to participate in the 
development of a large-scale water treatment and desalting prototype 
plant and necessary appurtenances to be constructed in Israel as an 
integral part of a dual-purpose power generating and desalting 
project. Such participation shall include financial, technical, and such 
other assistance as the President deems appropriate to provide for the 
study, design, construction, and, for a limited demonstration period 
of not to exceed five years, operation and maintenance of the water 
treatment and desalting facilities of the dual-purpose project. 

s« 22 use § 2177. This section was added by Sec. 102(e) of the FAAct of 1964. 
For other reports required to be submitted to Congress, see Reports to Congress, Index. 
22 use § 2178 Sec. 218 was added by Sec. 103(d) of the FAAct of 1967. 
22 use § 2179. Sec. 219 was added by Sec. 104 of the FAAct of 1969. 



31 



(b) Any agreement entered into under subsection (a) of this section 
shall include such terms and conditions as the President deems appro- 
priate to insure, among other things, that all information, products, 
uses, processes, patents, and other developments obtained or utilized 
in the development of this prototype plant will be available without 
further cost to the United States for the use and benefit of the United 
States throughout the world, and to insure that the United States, its 
officers and employees have a permanent right to review data and have 
access to such plant for the purpose of observing its operations and 
improving science and technology in the field of desalination. 

(c) In carrying out the provisions of this section, the President may 
enter into contracts with public or private agencies and with any per- 
son without regard to sections 3648 and 3709 of the Eevised Statutes of 
the United States (31 U.S.C. 529 and 41 U.S.C. 5) . 

(d) Nothing in this section shall be construed as intending to deprive 
the owner of any background patent or any right which such ov\'ner 
may have under that patent. 

(e) In carrying out the provisions of this section, the President ma}^ 
utilize the personnel, services, and facilities of any Federal agenc}'. 

(f ) The United States costs, other than its administrative costs, for 
the study, design, construction, and operation of a prototype plant 
under this section shall not exceed either 50 per centum of the total 
capital costs of the facilities associated with the production of water, 
and 50 per centum of the operation and maintenance costs for the 
demonstration period, or $20,000,000, whichever is less. There are au- 
thorized to be appropriated, subject to the limitations of this sub- 
section, such sums as may be necessary to carry out the provisions of 
this section, including administrative costs thereof. Such sums are au- 
thorized to remain available until expended.^^- 

(g) Xo funds appropriated for the Office of Saline Water pursuant 
to the appropriation authorized by the Act of July 11, 1969 (83 Stat. 
45, Public Law 91-43), or prior authorization Acts, shall be used to 
carry out the purposes of this section. 

Sec, 220.^-2 Programs for Peaceful Communication. — The Presi- 
dent is authorized to use funds made available under section 212 to 
carry out programs and peaceful communications which make use of 
television and related technologies, including satellite transmissions, 
for educational, health, agricultural, and commimit}- development 
purposes in the less developed countries. 

(b) In carrying out programs in the fields of education, health, 
agriculture, and community development, the agency primaril}- re- 
sponsible for part I shall, to the extent possible, assist the developing 
countries with research, training, planning assistance, and project sup- 
port in the use of television and related technologies, including satellite 
transmissions. The agency shall make maximum use of existing satel- 
lite capabilities, including the facilities of the International Tele- 
communications Satellite Consortium. 

(c) In implementing activities under this section, the agency pri- 
marily responsible for part I shall coordinate closely with Federal, 
State, and local agencies and with nongovernmental educational, 



102 FA Appropriation Act, 1970 : $20,000,000. 

US€ § 2180. Sec. 220 was added by Sec. 105 of the FAAct of 19G9. 



32 



health, and agricultural institutions and associations within the 
United States. 

Sec. 220A.'^^* Suez Canal. — The President is authorized to furnish 
financial assistance, on such terms and conditions as he may determine, 
for assisting in the reopening of the Suez Canal after agreement has 
been reached by the parties involved, which agreement provides for 
the use of the Canal hj^ the ships of all nations, including Israel, on a 
nondiscriminatory basis. For the purpose of carrying out this sec- 
tion, there are authorized to be appropriated not to exceed $10,000,000 
in Egyptian pounds now owned by the United States and determined 
by the President to be excess to the normal requirements of depart- 
rnents and agencies of the United States. Amounts appropriated under 
this section are authorized to remain available until expended. 

Title III— Housing and Other Credit Guaranty Programs 

Sec. 221.^°^' Worldwide Housing Guaranties. — In order to facilitate 
and increase the participation of private enterprise in furthering the 
development of the economic resources and productive capacities of 
less developed friendly countries and areas, and promote the develop- 
ment of thrift and credit institutions engaged in programs of mo- 
bilizing local savings for financing the construction of self-liquidating 
housing projects and related community facilities, the President is 
authorized to issue guaranties, on such terms and conditions as he 
shall determine, to eligible investors as defmed in section 238(c), 
assuring agjiinst loss of loan investments for self -liquidating housing 
projecLS. The total face amount of guaranties issued hereunder, out- 
standing at any one time, shall not exceed $430,000,000.^°^ Such guar- 
anties shall be issued under the conditions set forth in section 222(b) 
and section 223. 

See. 222.'^°^ Housing Projects in Latin American Countries. — 

(a) The President shall assist in the development in the Am.erican 
Republics of self-liquidating housing projects, the development of 
institutions engaged in Alliance for Progress programs, including co- 
operatives, free Labor unions, savings and loan type institutions, and 
other private enterprise programs in Latin America engaged directly 
or indirecth^ in the financing of home miortgages, the construction of 
homes for lower income persons and families, the increased mobiliza- 
tion of savings and improvement of housing conditions in Latin 
America. 

(b) To carry out the purposes of subsection (a), the President is 
authorized to issue guaranties, on such term.s and conditions as he 
shall determine, to eligible investors, as defined in section 238(c), 
assuring against loss of loan investment made by such investors in — 
(1) private housing projects in Latin America of types similar 
to those insured by the Department of Housing and Urban Devel- 
opment and suitable for conditions in Latin America ; 

22 use § 2180a. Sec. 220A was added by Sec. 102(c) of the FAAct of 1971. 
Title III was added by Sec. 105 of the FAAct of 1969. Sec. 8(a)(1) of the FAAct 
of 1974 snbstitnted the title heading "Housing and Other Credit Guaranty Programs" 
in lien of "Housing Guaranties". 

'-^ 22 use 2181. Sec. 221 was added by Sec. 105 of the FAAct of 19G9. 
^"•^Sec. 311(3) of Public Law 94-161 (89 Stat. 849) substituted "$430,000,000" in lieu 
of "$355,000,000". 

108 22 use 2182. Sec. 222 was added by Sec. 105 of the FAAct of 1969. 



33 



(2) credit institutions in Latin America engaged directly or 
indirectly in the fniancing of home mortgages, such as sayings and 
loan institutions and other qualified investment enterprises ; 
. (3) housing projects in Latin America for lower income fami- 
lies and persons, v>'hich projects shall be constructed in accordance 
Tvith m^aximum unit costs established by the President for f ami- 
lies and persons whose incomes meet the limitations prescribed by 
the President ; 

(4) liOusing projects in Latin America which will promote the 
development of institutions important to the success of the 
Alliance for ProaTess, such as free labor unions, cooperatives, and 
other private programs; or 

(5) housing projects in Latin America, 25 per centum or more 
of the a^^ijregate of tiie mort;>ao:e financing: for which is made 
available from sources within Latin America and is not derived 
from sources outside Latin America which projects shall, to the 
maximum extent practicable, have a unit cost of not more than 
$8,500. 

(c) The total face amount of guaranties issued hereunder or hereto- 
fore under Latin American housing guaranty authority repealed by 
the Foreign Assistance Act of 19G9, outstanding at any one time, shall 
not exceed S600,000,000 ^""'^ : Provided, That $31^5,000.000 of such guar- 
anties m.ay be used only for the purposes of subsection (b) (1). 

Sec. 222A.i'° Agricultural and Productive Credit and Self -Help 
Community Development Programs. — (a) It is the sense of the 
Congress that in order to stimulate the participation of the private 
sector in the economic development of less-developed countries in 
Latin America, the authority conferred by this section should be 
used to establish pilot programs in not more than five Latin American 
countries to encourage private banks, credit institutions, similar pri- 
vate lending organizations, cooperatives, and private nonprofit devel- 
opment organizations to make loans on reasonable terms to organized 
groups and individuals residing in a community for the purpose of 
enabling such groups and individuals to carry out agricultural credit 
and self-help community development projects for which they are 
unable to obtain financial assistance on reasonable terms. Agricultural 
credit and assistance for self-help community development projects 
should include, but not be limited to, material and such projects as 
wells, pumps, farm machinery, improved seed, fertilizer, pesticides, 
vocational training, food industry development, nutrition projects, im- 
proved breeding stock for farm animals, santitation facilities, and 
looms and other handicraft aids. 

(b) To carry out the purposes of subsection (a), the agency pri- 
marily responsible for administering part I is authorized to issue 
guaranties, on such terms and conditions as it shall determine, to pri- 
vate lending institutions, cooperatives, and private nonprofit develop- 
ment organizations in not more than five Latin American countries 
assuring against loss of not to exceed 50 per centum of the portfolio 
of such loans made by any lender to organized groups or individuals 

if«Sec. 311(4) of Public Law 94-161 (89 Stat. 849) substituted ?600,000,000" in lieu 
of "$550,000,000". 

110 22 use 2182a. Sec. 222A was added by Sec. 8(a) (2) of the FAAct of 1974. 



34 



residing in a community to enable such groups or individuals to carry 
out agri-cultural credit and self-help community development proj- 
ects for which they are unable to obtain financial assistance on reason- 
able terms. In no event shall the liability of the United States exceed 
75 per centum of any one loan. 

(c) The total face amount of guaranties issued under this section 
outstanding at any one time shall not exceed $15,000,000. Not more 
tlian 10 per centum of such sum shall be provided for any one insti- 
tution, cooperative, or organization. 

(d) The Inter- American Foundation shall be consulted in develop- 
ing criteria for making loans eligible for guaranty coverage in Latin 
America under this section. 

(e) Not to exceed $3,000,000 of the guaranty reserve established 
under section 223(b) shall be available to make such payments as may 
be necessary to discharge liabilities under guaranties issued under this 
section or any guaranties previously issued under section 240 of this 
Act. 

(f) Funds held by the Overseas Private Investment Corporation 
pursuant to section 236 may be available for meeting necessary admin- 
istrative and operatino- expenses for carrying out the provisions of this 
section through June 30, 1976. 

(g) The Overseas Private Investment Corporation shall, upon en- 
actment of this subsection, transfer to the agency primarily responsible 
for administering part I all obligations, assets, and related rights and 
responsibilities arising out of, or related to the predecessor program 
provided for in section 240 of this Act. 

(h) The authority of this section shall continue until December 31 ^ 
1977. 

(i) Notwithstanding the limitations in subsection (c) of this section, 
foreign currencies ow^ned by the United States and determined by the 
Secretary of the Treasury to be excess to the needs of the United 
States may be utilized to carry out the purposes of this section, includ- 
ing the discharge of liabilities under this subsection. The authority 
conferred by this subsection shall be in addition to authority conferred 
by any other provision of law to implement guaranty programs uti- 
lizing excess local currency. 

(j) The President shall, on or before January 15, 1976, make a de- 
tailed report to the Congress on the results of the program established 
under this section, together with such recommendations as he may 
deem appropriate. 

Sec. 223.^^^ General Provisions. — (a) A fee shall be charged for 
each guaranty issued under section 221. 222, or 222 A in an amount 
to be determined by the President. In the event the fee to be charged 
for such type guaranty is reduced, fees to be paid under existing con- 
tracts for the the same type of guaranty may be similarly reduced. 

(b) The amount of $50,000,000 of fees accumulated under prior in- 
vestment guaranty provisions repealed by the Foreign Assistance Act 
of 1969, together with all fees collected in connection with guaranties 
issued hereunder, shall be available for meeting necessary administra- 
tive and operating expenses of carrying out the provisions of section 



"1 22 use 21S3. Sec. 22.-? was added by Sec. 105 of the FAAct of 1909. 

"2 Sec. 8(a)<8) of the FAAct of 1974 substituted "section 221, 222, or 222A" in lieu of 
"section 221 or section 222". 



35 



2:21 and section 222 ^''^ and of prior housinfr gnaranty provisions re- 
pealed by the Foreign Assistance Act of 1969 (including, but not 
limited to expenses pertaining to personnel, supplies, and printing) , 
subject to such limitations as may be imposed in annual appropriation 
Acts ; for meeting management and custodial costs incurred with re- 
spect to currencies or other assets acquired under guaranties made 
pursuant to section 221 or section 222 or heretofore pursuant to prior 
Latin American and other housing guaranty authorities repealed by 
the Foreign Assistance Act of 1969 ; and to pay the cost of investigat- 
ing and adjusting (including costs of arbitration) claims under such 
guaranties; and shall be available for expenditure in discharge of 
liabilities under such guaranties until such time as all such property 
has been disposed of and all such liabilities have been discharged or 
have expired, or until all such fees have been expended in accordance 
with the provisions of this subsection. 

(c) Any payments made to discharge liabilities under guaranties 
issued under section 221 or section 222 or heretofore under prior Latin 
American or other housing guaranty authorities repealed by the For- 
eign Assistance Act of 1969, shall be paid first out of fees referred to in 
subsection (b) (excluding amounts required for purposes other than 
the discharge of liabilities under guaranties) as long as such fees are 
available, and thereafter shall be paid out of funds, if any, realized 
from the sale of currencies or other assets acquired in connection with 
any pajTnent made to discharge liabilities under such guaranties as 
long as funds are available, and finally out of funds hereafter made 
available pursuant to subsection (e) . 

(d) All guaranties issued under section 221, 222, 222 A, or previously 
under seftion 21-0 of lliis Act or heretofore under prior Latin Ameri- 
can or other housing guaranty authority repealed by the Foreign As- 
sistance Act of 1969 shall constitute obligations, in accordance with the 
terms of such guaranties, of the United States of America and the 
full faith and credit of the United States of America is hereby pledged 
for the full payment and performance of such obligations. 

(e) There is hereby authorized to be appropriated to the President 
such amounts, to remain available until expended, as may be necessary 
from time to time to carry out the purposes of this title. 

(f ) Tn the case of any loan investment guaranteed under section 221 
or section 222, tlie agency primarily responsible for administering 
part I shall prescribe the maximum rate of interest allowable to the 
eligible investor, which maximum rate shall not be less than one-half 
of 1 per centum above the then current rate of interest applicable to 
housinof mortaeres insured by the Department of Housing and Urban 
Development. Tn no event shall the agency prescribe a maximum al- 
lowable rate of interest which exceeds by more than 1 per centum the 
then current rate of interest applicable to housing mortages insured 
bv such Department. The maximum allowable rate of interest under 
this subsection shall be prescribed bv the agencv as of the date the 
project covered by the investment is officially authorized and, prior to 

"»S3pr>. RCa)(4) of the FAAct of 1974 substituted "section 221 and section 222" in lieu 
of "this title". 

"*F5po. S(aUn^ of the FAAr-t of 1974 substituted "section 221. 222, 222A, or previously 
under section 240 of this Act" In lieu of "section 221 or section 222". 



36 



the execution of the contract, the agency may amend such rate at its 
discretion, consistent with the provisions of subsection (f). 

(g) Housing guaranties commxitted, authorized, or outstanding 
under prior housing guaranty authorities repealed by the Foreign As- 
sistance Act of 1969 shall continue subject to provisions of law origi- 
nally applicable thereto and fees collected hereafter with respect to 
such guaranties shall be available for the purposes specified in subsec- 
tion (b). 

(h) ISTo paym^ent may be made under any guaranty issued pursuant 
to this title for any loss arising out of fraud or misrepresentation for 
which the party seeking payment is responsible. 

(i) The authority of section 221 and section 222 shall continue until 
September CO, 1978,^^5 

(j) Guaranties shall be issued under sections 221 and 222 only for 
housing projects which (1) except for regional projects are in coun- 
tries which f?re receiving, or which in the previous two fiscal 3^ears 
have received, development assistance under chapter 1 of part I of 
this Act, (2) are coordinated with and complementary to such assist- 
ance, and (8) are specifically designed to demonstrate the feasibility 
and suitability of particular kinds of housing or of financial or other 
institutiojial arrano-ements. Of the ao^gregate face value of housing 
guaranties hereafter issued under this title, not less than 90 per 
centum shall be issued for housing suitable for families with income 
below the median income (below the median urban incom.e for housing 
in urban areas) in the country in which the housing is located. The 
face value of guaranties issued with respect to housing in any coimtry 
shall not exceed $25,000,000 in anv fiscal year, r^nd the average face 
value of guaranties issued in any fiscal year shall not exceed $15, 000,- 
000. IS^otwithstanding the provisions of the first sentence of this sub- 
section, the President is authorized to issue housing guaranties until 
September 80. 1977, as follows : In Israel, not exceeding a face amount 
of $50,000,000, and in Portugal, not exceeding a face amount of 
$20,000,000. 

Title IV— Overseas Private Investment Corporation"' 

Sec. 231e"^ Creation, Purpose, and Policy. — To mobilize and 
facilitate the participation of United States private capital and skills 
in the economic and social development of less developed friendly 
countries and areas, thereby complementing the development assist- 
ance objectives of the United States, there is hereby created the 
Overseas Private Investment Corporation (hereinafter called the 
"Corporation"), which shall be an agency of the United States under 
the policy guidance of the Secretary of State. 

In carrying out its purpose, the Corporation, utilizing broad cri- 
teria, shall undertake — 



ii^Sfic. 311(5) fA) of Public Law 94-161 (89 Stat. 849) substituted "September 30, 
1978" in lieu of "June 30. 1976". 

"«Sec. 311(5) (B) of Public Law 94-161 (89 Stat. 849) added subsection (j). 
Title IV was added by sec. 105 of the FAAct of 1969. 
22 use 2191. Sec. 231 was added by Sec. 105 of the FAAct of 1969. 
""Sec. 2(1) (A) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390, approved Aug. 27, 1974) substituted "development" in lieu of 
"progress". 



37 



(a) ^-° to conduct financing, insurance, and reinsurance opera- 
tions on a self-sustaining basis, taking into account in its financing 
operations the economic and financial soundness of projects; 

(b) to utilize private credit and investment institutions and 
the Corporation's guaranty authority as the principal means of 
mobilizing capital investment funds ; 

(c) to broaden private participation and revolve its funds 
through selling its direct investments to private investors when- 
ever it can appropriately do so on satisf actor}^ terms ; 

(d) to conduct its insurance o^Derations with due regard to 
principles of risk management including ^-^ efforts to share its in- 
sui'ance risks and reinsurance risks ; 

(e) ^^^ to give preferential consideration in its investment insur- 
ance, financing, and reinsurance activities (to the maximum ex- 
tent practicable consistent with the Corporation's purposes) to 
investment projects involving businesses of not more than 
$2,500,000 net worth or with not more than $7,500,000 in total 
assets ; 

(f ) to encourage and support only those private investments in 
less developed friendly countries and areas which are sensitive 
and responsive to the special needs and requirements of their econ- 
omies, and which contribute to the social and economic develop- 
ment of their people ; 

(g) to consider in the conduct of its operations the extent to 
which less developed country governments are receptive to private 
enterprise, domestic and foreign, and their willingness and ability 
to maintain conditions which enable private enterprise to make its 
full contribution to the development process ; 

(h) to foster private initiative and competition and discourage 
monopolistic practices ; 

(i) to further to the greatest degree possible, in a manner con- 
sistent with its goals, the balance-of-payments and employ- 
ment objectives of the United States; 

(j) to conduct its activities in consonance with the activities of 
the agency primarily responsible for administering part I and the 
international trade, investment, and financial policies of the 
United States Government ; 

(k) to advise and assist, within its field of competence, inter- 
ested agencies of the United States and other organizations, both 
public and private, national and international, with respect to 
projects and programs relating to the development of private en- 
terprise in less developed countries and areas ; 



Subsection (a) was amended by Sec. 2(1) (B) of the Overseas Private Inve.=tri-».ent 
Corporation Amendments Act of 1974 (Public Law 98-390). It formerly read as follows: 
"(a) to conduct financinc: operations on a self-sustaininp basis, taking into account the 
economic and financial soundness of projects and the availability of financing from other 
sources on appronriate terms ;". 

1^ Sec. 2(1) (C) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) struck the words, "when appropriate," which appeared at 
this point. 

^ Sec. 2(1) (C) of the Overseas Private Invesment Corporation Amendments Act of 1974 
(Public Law 93-390) added the words "and reinsurance". 

Subsection (el was amended by Sec. 2(1) (D) of the Overseas Private Inve'?tment 
Corporation Amendments Act of 1974 (Public Law 93-390), It formerly read as follows: 
"(e) to utilize, to the maximum practicable extent consistent with the accomplishment 
of its purpose, the resources and skills of small business and to provide facilities to 
encourage its full participation in the programs of the Corporation :". 

Sec. 2(1) (E) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the words "and employment". 



38 



(1),^-^ to the maximum extent practicable, to give preferential 
consideration in the Corporation's investment insurance, financ- 
ing, and reinsurance activities to investment projects in the less 
developed friendly countries vrhich have per capita incomes of 
$150 or less in 1973 United States dollars ; and 

(m)^-^ (1) to decline to issue any contract of insurance or rein- 
surance, or an^^ guaranty, or to enter into any agreement to pro- 
vide financing for an eligible investor's proposed investment if 
the Corporation determines that such investment is likely to cause 
such investor (or the sponsor of an investment project in which 
such investor is involved) significantly to reduce the number of 
his employees in the United States because he is replacing his 
United States production with production from such investment 
which involves substantially the same product for substantially 
the sam.e market as his United States production; and (2) to 
monitor conformance with the representations of the investor on 
which the Corporation relied in making the determination re- 
quired by clause (1). 
Sec, 232,^-^ Capital of the Corporation. — The President is au- 
thorized to pay in as capital of the Corporation, out of dollar receipts 
made available through the appropriation process from loans made 
pursuant to this part and from loans made under the Mutual Security 
Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,- 
000 and for the fiscal yonr 1971 not to exceed $20,000,000. i-" Upon the 
payment of such capital by the President, the Corporation sb.all issue 
an equivalent am.ount of capital stock to the Secretary of the Treasury. 

Sec. 233.^-^ Organization and Management. — (a) Structure of 
the Corporation. — The Corporation shall have a Board of Directors, 
a President, an Executive Vice President, and such other officers and 
staff as the Board of Directors ma^/ determine. 

(b) Board of Directors. — All powers of the Corporation shall vest 
in and be exercised by or under the authority of its Board o,f Directors 
(''the Board") which shall consist of eleven Directors, including the 
Chairman, with six Directors constituting a quorum for the trans- 
action of business. The Administrator of the Agency for International 
Development shall be the Chairman of the Board, ex officio. Six Direc- 
tors (other than the President of the Corporation, appointed pur- 
suant to subsection (c) who shall also serve as a Director) shall be 
appointed by the President of the United States, by and with the 
advice and consent of the Senate, and shall not be officials or employees 
of the Government of the United States. As least one of the six Direc- 
tors appointed under the preceding sentence shall be experienced in 
small business, one in organized labor, and one in cooperatives. Each 
such Director shall be appointed for a term of no more than three 
j^ars. The terms of no more than two such Directors shall expire in any 
one year. Such Directors shall serve until their successors are appointed 
and qualified and may be reappointed. 

The other Directors shall be officials of the Government of the United 
States, designated by and serving at the pleasure o.f the Prseident of 
the United States. 

1^ Subsections (1) and (m) were afldod by S^c. 2(1) (H) of the Overseas Trivate Invest- 
ment Torporat'on Amendments Act of l'.)74 (Public I-aw r»3--;i90). 

1^ 22 use 2102 Sec. 232 was added bv Sec. 105 of the FAAct of 1069. 

FA Appropriation Act. 1074. included no appropriation under this authorization. 
128 22 use 2193. Sec. 233 was added by Sec. 105 of the FAAct of 19G9. 



39 



All Directors who are not officers of the Corporation or officials of 
the Government of the United States shall be compensated at a rate 
equivalent to that of level TV of the Executive Schedule (5 U.S.C. 
5315) when actually engaged in the business of the Corporation and 
may be paid per diem in lieu of subsistence at the applicable rate pre- 
scribed in the standardized Government travel regulations, as 
amended, from time to time, while away from their homes or usual 
places of business. 

(c) President of the Corporation. — The President of tlie Corpora- 
tion shall bo appointed b}^ the President of the United States, by and 
with the advice and consent of the Senate, and shall serve at the 
pleasure of the President. In miaking such appointment, the President 
shall take into account private business experience of the appointee. 
The President of the Corporation shall be its Chief Executive Officer 
and responsible for the operations and management of the Corpora- 
tion, subject to bylavrs ancl policies established by the Board. 

(d) Oincers and staff. — The Executive \ice Presidort of the 
Corporation shall be appointed by the President of the United States, 
by and with the advice and consent of the Senate, and shall serve at 
the pleasure of the President. Other officers, attorneys, employees, and 
agents shall be selected and appointed by the Corporation, and shall be 
vested with such powers and duties as the Corporation may determine. 
Of such persons employed by the Corporation, not to exceed twenty 
may be appointed, compensated, or removed without regard to the civil 
service laws and regidations: Provided^ That under such regulations 
as the President of the United States may prescribe, officers and em- 
ployees of the United States Government who are appointed to any of 
the above positions may be entitled, upon removal from such position, 
except for cause, to reinstatement to the position occupied at the time 
of appointment or to a position of comparable grade and salary. Such 
positions shall be in addition to those otherwise authorized by law, 
including those authorized by section 5108 of title 5 of the United 
States Code. 

Sec. 234.'^^ Investment Insurance and Other Programs.^^^ — The 
Corporation is hereby authorized to do the following: 

(a) Investment Insurance. — (1) To issue insurance, u.pon such 
terms and conditions as the Corporation may determine, to eligible 
investors assuring protection in whole or in part against any or all of 
the following risks with respect to projects which the Corporation has 
approved — 

{A) inability to convert into United States dollars other cur- 
rencies, or credits in such currencies, received as earnings or profits 
from the approved project, as repayment or return of the invest- 
ment therein, in whole or in part, or as compensation for the sale 
or disposition of all or any part thereof; 

(B) loss of investment, in whole or in part, in the approved 
project due to expropriation or confiscation by action of a foreign 
government ; and 

(C) loss due to war, revolution, or insurrection. 

22 use 2194. Sec. 234 was added by Sec. 105 of the FAAct of 1969. 
I*' Sec. 2(2) (A) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted section caption "Investment Insurance and Other 
Programs" in lieu of "Investment Incentive Programs". 



40 



(2) Eecoo-iiiziji^- that major private investments in loss developed 
friendly countries or areas are often made by enterprises in which 
there is multinational participation, including significant United 
States private participation, the Corporation may make arrangements 
with foreign governments (including agencies, instrumentalities, or 
political subdivisions thereof) or with multilateral organizations and 
institutions for sharing liabilities assumed under investment insurance 
for such investments and may in connection therewith issue insurance 
to investors not otherwise eligible hereunder, except that liabilities 
assumed b,y the Corportion under the authority of this subsection 
shall be consistent with the purposes of this title and that the maximum 
share of liabilities so assumed shall not exceed the proportionate par- 
ticipation by eligible investors in the total project financing, and that 
the maximum share of liabilities so assumed under paragraph (1) (A) 
and (B) or paragraph (1) (C) shall not exceed the Corporation's pro- 
portional share of such liabilities as specified in paragraph (4) or (5) 
of this subsection. 

(3) Not more than 10 per centum o,f the total face amount of invest- 
ment insurance which the Corporation is authorized to issue under this 
subsection shall be issued to a single investor. 

(4) ^'^ (A) It is the intention of Congress that the Corporation 
achieve participation by private insurance companies, multilateral 
organizations, or others in liabilities incurred in respect of the risks 
referred to in paragraphs (1) (A) and (B) of this subsection under 
contracts issued on and after January 1, 1975, of at least 25 per centum, 
and, under contracts issued on and after January 1, 1978, of at least 
50 per centum. If for good reason it is not possible for the Corpora- 
tion to achieve either such percentage of participation, the Corpora- 
tion shall report in detail to the Committee on Foreign Relations of 
the Senate and the Committee on Foreign Affairs of the House of 
Representatives the reasons for its inability to achieve either such 
percentage of particip>ation, and the date by which such percentage is 
to be achieved. 

(B) The Corporation shall not participate as insurer under con- 
tracts of insurance issued after December 31, 1979, in respect of the 
risks referred to in paragraphs (1) (A) and (B) of this subsection un- 
less Congress by law modifies this paragraph. 

(5) (A) It is the intention of Congress that tlie Corporation 
achieve participation by private insurance companies, multilateral 
organizations, or others in liabilities incurred in respect of the risks 
referred to in paragraph (1)(C) of this subsection under contracts 
issued on and after January 1, 1976, of at least 121/^ per centum, and 
under contracts issued on and after January 1, 1979, of at least 40 per 



Subsection (a) (2) was amended by Sec. 2(2) (B) of the Overseas Private Investment 
Corporation Amendments Act of 1074 (Public Law 93-390). It formerly road as follows: 
"(2) Recognlzinpr that major private investments in less developed friendly countries or 
areas are oft^n made bv enterprises in which there is multinational participation, includ- 
inpr sij^nificant Fnited States private participation, the Corporation may make such arrange- 
ments with foreign governments (including agencies, instrumentalities, or political sub- 
divisions thpreof) or with multilateral organizations for sharing liabilities assumed under 
investment insurance for such investments and may in connection therewith issue insurance 
to investors not otherwise eligible hereunder: Provided, Iwviever, That liabilities assumed 
bv the Cornoration under the authoritv of this subsection shall be consistent with the pur- 
poses of this title and that the maximum share of liabilities so assumed shall not exceed 
the proportionate participation by elitrible investors in the total project financing." 

.«pc 2(2) (P) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added paragraphs (4), (5), (6), and (7). 



41 



<;eiitum. If for good reason it is not possible for the Corporation to 
achieve either such percentage of participation, the Corporation shall 
report in detail to the Committee on Foreign Eelations of the Senate 
and tiie Committee on Foreign Affairs of the House of Representatives 
the reasons for its inability to achieve either such percentage of par- 
ticipation and the date by which such percentage is to be achieved. 

(B) The Corporation shall not participate as insurer under con- 
tracts of insurance issued after December 31, 1980, in respect of the 
risks referred to in paragraph (1) (C) of this subsection unless Con- 
gress by law modifies this paragraph. 

(G) ^-^2 Notwith-tandino- anv of the peroenta/:-'^s of partir^ination 
under paragraphs (4) (A) and (5) (A) of this subsection, the Corpo- 
ration may agree to assume liability as insurer for any contract of 
insurance, or share thereof, that a private insurance company, multi- 
lateral organization, or any other person has issued in respect of the 
risks referred to in paragraph (1) of this subsection, and neither the 
execution of any such agreement to assume liability nor its perform- 
ance by the Corporation shall be considered as participation by the 
Corporation in any such contract for purposes of such percentages of 
participation. On and after January 1, 1981, the Corporation shall not 
enter into any such agreement to assume liability. 

(7)^^- On and after December 31, 1979, the Corporation shall not 
manage direct insurance issued after such date in respect of risks re- 
ferred to in paragraph (1) (A) or (B) of this subsection unless Con- 
gress by law modifies this sentence. On and after December 31, 1980, 
the Corporation shall not manage direct insurance issued after such 
date in respect of risks referred to in paragraph (1) (C) of this sub- 
section unless Congress by law modifies this sentence. It shall there- 
after act solely as a reinsurer except to the extent necessary to manage 
its outstanding insurance and reinsurance contracts and any contracts 
of insurance the Corporation assumes pursuant to paragraph (6). 

(b) Investment Guaranties- — To issue to eligible investors guar- 
anties of loans and other investments made by such investors assuring 
against loss due to such risks and upon such terms and conditions as 
the Corporation may determine : Provided^ however^ That such guar- 
anties on other than loan investments shall not exceed 75 per centum 
of such investment: Provided further^ That except for loan invest- 
ments for credit unions made by eligible credit unions or credit union 
associations, the aggregate amount of investment (exclusive of inter- 
est and earnings) so guaranteed Avith respect to any project shall not 
exceed, at the time of issuance of any such guaranty, 75 per centum of 
the total investment committed to any such project as determined by 
the Corporation, which determination shall be conclusive for purposes 
of the Corporation's authority to issue any such guaranty : Provided 
further^ That not more than 10 per centum of the total face amount 
of investment guaranties which the Corporation is authorized to 
issue under this subsection shall be issued to a single investor. 

(c) Direct Investment. — To make loans in United States dollars 
repayable in dollars or loans in foreign currencies (including, without 
regard to section 1415 of the Supplemental Appropriation Act, 1953, 
such foreign curencies which the Secretary of the Treasury may deter- 



42 



mine to be excess to the normal requirements of the United States and 
the Director of the Bureau of tlie Budget may allocate) to firms pri- 
vately owned or of mixed private and public ownership upon such 
terms and conditions as the Corporation may determine. The Corpora- 
tion may not purchase or invest in any stock in any other corporation, 
except that it may (1) accept as evidence of indebtedness debt secu- 
rities convertible to stock, but such debt securities shall not be con- 
verted to stock while held by the Corporation, and (2) acquire stock 
through the enforcement of any lien or pledge or otherwise to satisfy 
a previously contracted indebtedness which would otherwise be in 
default, or as the result of any payment under any contract of insur- 
ance or guaranty. The Corporation shall dispose of any stock it may 
so acquire as soon as reasonably feasible under the circumstances then 
pertaining. 

No loans shall be made under this section to finance operations for 
mining or other extraction of any deposit of ore, oil, gas, or other 
mineral. 

(d) Investment Encouragement — To initiate and support 
through financial participation, incentive grant, or otherwise, and on 
such terms and conditions as the Corporation may determine, the 
identification, assessment, surveying and promotion of private invest- 
ment opportunities, utilizing wherever feasible and effective the fa- 
cilities of private investors : Provided^ hoioever. That the Corporation 
shall not finance surveys to ascertain the existence, location, extent 
or quality, or to determine the feasibility of undertaking operations 
for mining or other extraction, of any deposit of ore, oil, gas, or other 
mineral. In carrying out this authority, the Corporation shall co- 
ordinate with such investment promotion activities as are carried 
out by the Department of Commerce. 

(e) Special Activities. — To administer and manage special projects 
and programs, including programs of financial and advisory support 
which provide private technical, professional, or managerial assist- 
ance in tlie development of human resources, skills, technology, 
capital savings and intermediate financial and investment institutions 
and cooperatives. The funds for these projects and programs may, 
with the Corporation's concurrence, be transferred to it for such pur- 
])oses under the authority of section 632(a) or from other sources, pub- 
lic or private. 

(f) '^^^ Other Insurance Functions. — (1) To make and carry out 
contracts of insurance or reinsurance, or agreements to associate or 
share risks, with insurance companies, financial institutions, any other 
persons, or groups thereof, and employing the same where appropriate, 
as its agent, or acting as their agent, in the issuance and servicing of 
insurance, the adjustment of claims, the exercise of subrogation rights, 
the ceding and accepting of reinsurance, and in any other matter 
incident to an insurance business. 

(2) To enter into pooling or other risk-sharing agreements with 
other national or multinational insurance or financing agencies or 
groups of such agencies. 



Subsection ff) wap added by Sec, *>('_MilM of the <^vers<'as Private Investment Cor 
poration Amendments Act of 1974 (I'ublie Law 0"^-o')i>) . 



43 



(o) To liold an OAA-nership interest in any association or other entity 
established for the purposes of sharing risks under investment 
insurajice. 

(4)' To issue, upon such terms and conditions as it may determine, 
I'einsurance of liabilities assumed by other insurers or groups thereof 
in respect of risks referred to in subsection (a) (1). 

The authority granted by paragraph (3) may be exercised notwith- 
standing the prohibition under subsection (c) against the Corporation 
purchasing or investing in any stock in any other corporation. The 
amount of reinsurance of liabilities under this title which the Cor- 
poration may issue shall not exceed $600,000,000 in any one year, and 
the amount of such reinsurance shall not in the aggregate exceed at 
any one time an amount equal to the amount authorized for the maxi- 
mum contingent liability outstanding at any one time under section 
235 (a) (1). All reinsurance issued by the Corporation under this sub- 
section shall re(}uire tliat the reinsured party retain for his own ac- 
count specified portions of liability, whether first loss or otherwise, 
and the Corporation shall endeavor to increase such specified portions 
to the maximum extent possible. 

Sec. 235.^^^ Issuing Authority, Direct Investment Fund and 
Reserves. — (a)(1) The maximum contingent liability outstanding 
at anv one time pursuant to insurance issued under section 234(a) 
shall iiot exceed $7,500,000,000. 

(2) The maximum contingent liability outstanding at any one time 
pursuant to guaranties issued under section 234(b) shall not exceed in 
the aggregate $750,000,000, of which guaranties of credit union invest- 
ment shall not exceed $1,250,000: Provided^ That the Corporation 
shall not make any commitment to issue any guaranty which would 
result in a fractional reserve less than 25 per centum of the maximum 
contingent liability then outstanding against guaranties issued or 
commitments jnade pursuant to section 234(b) or similar predecessor 
guaranty authority. 

(3) The Congress, in considering the budget programs transmitted 
by the President for the Corporation, pursuant to section 104 of the 
Government Corporation Cojitrol Act, as amended, may limit the ob- 
ligations and contingent liabilities to be undertaken \mder section 
234(a) and (b) as well as the use of funds for operating and adnnnis- 
trative expenses. 

(4) The authority of section 234(a) (b) shall continue tmtil Decem- 
ber 31, 1977.^25 

(b) There shall be established a revolving fund, known as the Direct 
Investment Fund, to be held by the Corporation. Such fund shall con- 
sist nntially of amounts made available under section 232, shall be 
available for the purposes authorized under section 234(c), shall be 
charged with realized losses and credited with realized jrains and shall 
be credited with such additional sums as may be transferred to it under 
the provisions of section 236. 

J!^ -'"-^ ^'"^^ added by Sec. 105 of the FAAct of 1960. 

1Q-1 ,T-^^)^^^^9^oto®. Overseas Private Investment Corporation Amendments Act of 
19<-1 ^ Public Law 93-390) substituted "1977" in lieu of "1974" 



44 



(c) There shall be established in the Treasury of the United States 
an insurance and guaranty fund, which shall have separate accounts 
to be known as the Insurance Reserve and the Guaranty Reserve, 
which reserves shall be available for discharge of liabilities, as pro- 
vided in section 235 (d) , until such time as all such liabilities have been 
discharged or have expired or until all such reserves have been ex- 
pended in accordance with the provisions of this section. Such fund 
shall be funded by: (1) the funds heretofore available to discharge 
liabilities under predecessor guaranty authority (including housing 
guaranty authorities), less both the amount made available for hous- 
ing guaranty programs pursuant to section 223(b) and the amount 
made available to the Corporation pursuant to section 234(e) and 
(2) such sums as shall be appropriated pursuant to section 235(f) for 
such purposes. The allocation of such funds to each such reserve shall 
be determined by tlie Board after consultation with the Secretary of 
the Treasury. Additional amounts may thereafter be transferred to 
such reserves pursuant to section 236. 

(d) Any payment made to discharge liabilities under investment 
insurance or reinsurance issued under section 234 or under similar 
predecessor guaranty authority shall be paid first out of the Insurance 
Reserve, as long as such reserve remains available, and thereafter out 
of funds made available pursuant to section 235(f). Any payments 
made to discharge liabilities under guaranties issued under section 
234(b) or under similar predecessor guarantj^ authority shall be paid 
first out of the Guaranty Reserve as long as such reserve remains 
available, and thereafter out of funds made available pursuant to sec- 
tion 235(f). 

(e) There is hereby authorized to be transferred to the Corpora- 
tion at its call, for the purposes specified in section 23G, all fees and 
other revenues collected under j)redecessor guaranty authority from 
December 31, 1968, available as of the date of such transfer. 

(f ) There are autliorized to be appropriated to the Corporation, to 
remain available until expended, such amounts as may be necessary 
from time to time to replenish or increase the insurance and guaranty 
fund, to discharge the liabilities under insurance, reinsurance, or guar- 
anties issued b}^ th.e Corporation or issued under predecessor guaranty 
authority, or to discharge obligations of tlie Corporation purchased 
by the Secretary of the Treasury pursuant to this subsection. How- 
ever, no appropriations shall be made to augment the Insurance Re- 
serve until the amount of funds in the Insurance Reserve is less than 
$25,000,000. Any appropriations to augment tlie Insurance Reserve 
shall then only be made either pursuant to specific authorization en- 
acted after the date of enactment of the Overseas Private Investment 
Corporation Am.endments Act of 1974, or to satisfy tlie full faith and 
credit provision of section 237(c). In order to discharge liabilities 

^3<^ The correct reference is "section 235(e)". 

See. 2(:>MB) of tlie Overseas I'rivnte Investment Corporation Amendments Act of 
1074 (Pnh'ic Law 93-800) snbstituted "insurance or reinsurance issued under section 234" 
in lieu of "insurance issued under section 234(a)", 

i''' Subsection (f) v;as amended by v^-ec. 2(3) (C) of the Overseas Private Investment 
Corporation Amendments Act of 1074 (Public Law 03-300), It formerly read ns follows: 
"(f^ There is hereby authorized to be appropriated to the Corporation, to remain available 
until expended, such amounts as may be necessary from time to time to replenish or 
increase the insurance and guaranty fund or to discharjre the liabilities under insurance 
and guaranties issued by the Corporation or issued under predecessor guaranty authority". 



45 



under investment insurance or reinsurance, the Corporation is author- 
ized to issue from time to time for purchase by the Secretary of the 
Treasury its notes, debentures, bonds, or other obligations; but the 
aggregate amount of such obligations outstandincT at any one time 
shall not exceed $100,000,000. Any such obligation shall be repaid to 
the Treasury within one year after the date of issue of such obliga- 
tion. Any such obligation shall bear interest at a rate determined by 
the Secretary of the Treasury, taking into consideration the current 
average market yield on outstanding marketable obligations of the 
United States of comjoarable maturities during the month preceding 
the issuance of any obligation authorized by this subsection. The Sec- 
retary of the Treasury shall purchase any obligation of the Corpora- 
tion issued under this subsection, and for such purchase he may use an 
a public debt transaction the proceeds of the sale of any securities 
issued under the Second Liberty Bond Act after the date of enactment 
of the Overseas Private Investment Corporation Amendments Act of 
1974. The purpose for which securities may be issued under such Bond 
Act shall include any such purchase. 

Sec. 236.^2^ Income and Revenues. — In order to carry out the 
purposes of the Corporation, all revenues and income transferred to 
or earned by the Corporation, from whatever source derived, shall be 
held by the Corporation and shall be available to carry out its purposes, 
including without limitation — 

(a) payment of all expenses of the Corporatioii, including in- 
vestment promotion expenses ; 

(b) transfers and additions to the insurance or guaranty re- 
serves, the Direct Investment Fund established pursuant to section 
235, and such other funds or reserves as the Corporation may 
establish, at such time and in such amounts as the Board may de- 
termine : and 

(c) payment of dividends, on capital stock, which shall consist 
of and be paid from net earnings of the Corporation after pay- 
ments, transfers, and additions under subsections (a) and (b) 
hereof. 

Sec. 237.'*° General Provisions Relating to Insurance and 
Guaranty Program. — (a) Insurance, guaranties, and reinsurance^*^ 
issued under this title shall cover investment made in connection with 
projects in any less developed friendly country or area with the govern- 
ment of which the President of the United States has agreed to in- 
stitute a program for insurance, guaranties, or reinsurance.^-- 

(b) The Corporation shall determine that suitable arrangements 
exist for protecting the interest of the Corporation in connection with 
any insurance, guaranty or reinsurance issued imder this title, in- 
cluding arrangements concerning ov»^nership, use, and disposition 
of the currency, ci-edits. assets, or investments on account of which pay- 
ment under such insurance, guarant}^, or reinsurance is to be maclcy 

139 22 use 21SG. Sec. 2.?6 was added by Sec. 105 of the FAAct of 1969. 
22 use 2197. Sec. 2.37 was added by Spc. 105 of the FAAct of 19fi0. 

Sec. 2(4) (A) of the Overseas Private Investment eorporation Amendments Act of 
1974 (Public Law 93-390) substituted the words ", guaranties, and reinsurance'' in lieu 
of "'and guaranties". 

See. 2(4) (A) of the Overseas Private Investment Corporation Amendments Act of 
19 < 4 (Public Law 93-390) substituted the words, "guaranties, or reinsurance" in lieu of 
or guaranties". 

Sec. 2(4) (R) of the Overseas Private Investment Cornoration Amendments Act of 
19(4 (''ublir Law 93-390) substituted the words, "guaranty or reinsurance" in lieu of 
or guaranty 



46 



and right, title, claim, or cause of action existing in connection 
therewith. 

(c) All guaranties issued prior to July 1, 19oG, all guaranties issued 
under sections 202(b) and 413(b) of the Mutual Security Act of 1954, 
as amended, all guaranties heretofore issued pursuant to prior guaranty 
authorities repealed by the Foreign Assistance Act of 1969, and all 
insurance, reinsurance,^^'^ and guaranties issued pursuant to this title 
shall constitute obligations, in accordance with the terms of such in- 
surance, reinsurance,^^* or guaranties, of the United States of America 
and the full faith and credit of the United States of America is hereby 
pledged for the full payment and performance of such obligations. 

(ci) ^"^^ Fees shall be charged for insurance, guaranty, and reinsurance 
coverage in am.ounts to be determined by the Corporation. In the event 
fees charged for investment insurance, guaranties, or reinsurance are 
reduced, fees to be paid under existing contracts for the same type of 
insurance, guaranties, or reinsurance and for similar guaranties issued 
under predecessor guaranty authority may be reduced. 

(e) Ho insurance, guaranty, or reinsurance of any equity invest- 
ment shall extend beyond twenty years from the date of issuance. 

(f ) IS^o insurance, reinsurance,^*'^ or guaranty issued under this title 
shall exceed the dollar value, as of the date of the investment, of the 
investment made in the project with the approval of the Corporation 
plus interest, eariiings or profits actually accrued on said investment to 
the extent provided by such insurance, reinsurance or guaranty. ^^Tot- 
withstanding the preceding sentence, the Corporation shall limit the 
amount of clirect insurance and reinsurance issued by it under section 
234 so that risk of loss as to at least 10 per centum of the total invest- 
ment of the insured and its affiliates in the project is borne by the in- 
sured and such affiliates. The preceding sentence shall not apply to the 
extent not permitted by State law.^*^ 

(g) No j)ayment may be made under any guaranty, insurance or re- 
insurance issued pursuant to this title for any loss arising out of 
fraud or misrepresentation for which the party seeking payment is 
responsible. 

(h) Insurance, guaranties, or reinsurance '^^^ of a loan or equity in- 
vestment of an eligible investor in a foreign bank, iinance company, or 
other credit institution shall extend only to such loan or equity invest- 
ment and not to any individual loan or equity investment made by 
such foreign bank, finance company, or other credit institution. 

Spc. 2(4) (C) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the word, "reinsurance". 

Srhscftion fd) was amended by Sec. 2(4) (D) of the Overseas Private Investment 
Corp(!ru!on Amenrlnionts -Act of 1974 (Public Law 93-390). It formerly read as follows: 
"(d) Fees shall be charpred for insurance and pu^iranty coverajre in amounts to be deter- 
mined by the Corporation. In the event fees to be charged for investment insurance or 
pu.iranties are reduced, fees to be paid under existing contracts for the same type of 
jrnnranties or insurance and for similar guaranties issued under predecessor guaranty 
authority may bp reduced". 

i'<^Sec. 2(4) (E) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted the words ", guaranty, or reinsurance" in lieu of 
"or 'jT'.iarau^^y". 

Sec. 2(4) (F) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) added the word reinsurance". 

Sec. 2(4) (0) of tho Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 9:',-390) added the last two sentences of subsection (f) beginning with 
"Notwithstanding the preceding sentence. * * *" 

Sec. 2(4) (II) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 9-3-390) added the words ". insurance, or reinsurance". 

i-,o c;pr>. 2(4) (I) of the Overseas Private Investment Corporation Amendments Act of 
1974 (Public Law 93-390) substituted the words guaranties, or reinsurance" in lieu 
of "or guaranties". 



47 



(i) Claims arising as a result of insurance, reinsurance 
anty operations under this title or under predecessor guaranty au- 
thority may be settled, and disputes arising as a result thereof may 
be arbitrated with the consent of the parties, on such terms and condi- 
tions as the Corporation may determine. Payment made pursuant to 
any such settlement, or as a result of an arbitration award, shall be 
final and conclusive notwithstanding any other provision of law. 

(j ) Each guaranty contract executed by such officer or officers as may 
be designated by the Board shall be conclusively presumed to be issued 
in compliance with the requirements of this Act. 

(k)^^- In making a determination to issue insurance, guaranties, or 
reinsurance under this title, the Corporation shall consider the possible 
adverse effect of the dollar investment under such insurance, guaranty, 
or reinsurance upon the balance of payments of the United States. 

Sec. 238.^^^ Definitions. — As used in this title — 

(a) the term "investment" includes any contribution of fimds, 
commodities, services, patents, processes, or techniques, in the 
form of (1) a loan or loans to an approved project, (2) the pur- 
chase of a share of ownership in any such project, (3) participa- 
tion in royalties, earnings, or profits of any such project, and (4) 
the furnishing of commodities or services pursuant to a lease or 
other contract ; 

(b) the term "expropriation" includes, but is not limited to, any 
abrogation, repudiation, or impairment by a foreign government 
of its own contract with an investor with respect to a project, 
where such abrogation, repudiation, or impairment is not caused 
by the investor's own fault or misconduct, and materially ad- 
versely affects the continued operation of the project ; 

(c) the term "eligible investor" means: (1) United States 
citizens; (2) corporations, partnerships, or other associations in- 
cluding nonprofit associations, created under the laws of the 
United States or any State or territory thereof and substantially 
beneficially owned by United States citizens; and (3) foreign 
corporations, partnerships, or other associations wholly owned 
by one or more such United States citizens, corporations, partner- 
ships, or other associations : Provided however^ That the eligibility 
of such f oreign_ corporation shall be determined without regard 
to any shares, in aggregate less than 5 per centum of the total 
issued and subscribed share capital,^^* held by other than the 
United States owners: Provided further^ That in the case of any 
loan investment a final determination of eligibility may be made 
at the time the insurance or guaranty is issued; in' all other cases, 
the investor must be eligible at the time a claim arises as well as 
the time the insurance or guaranty is issued ; and 

^/^T^- ^"^^ Overseas Private Investment Corporation Amendments Act of 

19(4 (Public Law 93-390) added flie word ", reinsurance". 

Subsection (k) was amended by Sec. 2(4) (K) of the Overseas Private Investment 
^corporation Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: 
(U) In making a determination to issue insurance or a guarantv under this title, the 
(corporation shall consider the possible adverse effect of the dollar investment under such 
T?o°^ guaranty upon the balance of payments of the United States". 
\t ^t^^C 2198. Sec. 238 was added by Sec. 105 of the FAAct of 1969. 
by Sec 104("a^) of ?he FAAc?of 197l^° ^'^^^^ appeared at this point were struck out 



65-998—76 5 



48 



(d) the term "predecessor guaranty authority" means prior 
guai-anty authorities (other than housing guaranty authorities) 
repealed by the Foreign Assistance Act of 1969, section 202(b) 
and 413(b) of the Mutual Security Act of 1954, as amended, and 
section 111(b) (3) of the Economic Cooperation Act of 1948. as 
amended (exclusive of authority relating to informational media 
guaranties) . 

Sec. 239/^^ General Provisions and Powers. — (a) The Corpora- 
tion shall have its principal office in the District of Columbia and shall 
be deemed, for purposes of venue in civil actions, to be resident thereof. 

(b) The President shall transfer to the Corporation, at such time as 
he may determine, all obligations, assets and related rights and re- 
sponsibilities arising out of, or related to, predecessor program.s and 
authorities similar to those provided for in section 234 (a), (b), and 
(d). Until such transfer, the agency heretofore responsible for such 
predecessor programs shall continue to administer such assets and 
obligations, and such programs and activities authorized under this 
title as may be determined by the President. 

On December 31, 1979, the Corporation shall cease operating the 
programs authorized by section 234 (b) through (e) and section 240. 
Thereafter, the President is authorized to transfer such programs, and 
all obligations, assets, and related rights and responsibilities arising 
out of, or related to, such programs to other agencies of the United 
States. Upon any such transfer, these programs shall be limited to 
countries Avith per capita income of or less in 1973 dollars.^^" 

(c) The Corporation shall be subject to the applicable provisions of 
the Government Corporation Control Act, except as otherwise pro- 
vided in this title. 

(d) To carry out the purposes of this title, the Corporation is au- 
thorized to adopt and use a corporate seal, which shall be judicially 
noticed; to sue and be sued in its corporate name; to adopt, amend, 
and repeal bylaws governing the conduct of its business and the per- 
formance of the powers and duties granted to or imposed upon it by 
law ; to acquire, hold or dispose of, upon such terms and conditions as 
the Corporation may determine, any property, real, personal, or mixed, 
tangible or intangible, or any interest therein; to invest funds derived 
from fees and other revenues in obligations of the United States and to 
use the proceeds therefrom, including earnings and profits, as it shall 
deem appropriate; to indemnifv^ directors, officers, employees and 
agents of the Corporation for liabilities and expenses incurred in con- 
nection with their Corporation activities ; to require bonds of officers, 
employees, and agents and pay tlie premiums therefor ; notwithstand- 
ing any other provision of law, to represent itself or to contract for 
representation in all legal and arbitral proceedings ; to purchase, dis- 
count, rediscount, sell, and negotiate, with or without its endorsement 
or guaranty, and guarantee notes, participation certificates, and other 
evidence of indebtedness (provided that the Corporation shall not 



22 use 2199. Sec. 239 was added by Sec. 10.5 of the FAAct of 1969. 
iB«A Presidential Determination of Dec. 30, 1969. provided for AID administration 
until transfer to the Overseas Private Investment Corporation. 

Snbsectlon (d) was amended by Sec. 2(5) (A) of the Overseas Private Inve.<?tment 
Corporation Amendments Act of 1974 (Public Law 9.S-390) by adding the last three 
sentences beginning with the words "On December 31, 1979, * * *" 



49 



issue its own securities, except participation certificates for the purpose 
of carrying out section 231 (c) ) ; to make and carry out such contracts 
and agreements as are necessary and advisable in the conduct of its 
business; to exercise the priority of the Government of the United 
States in collecting debts from bankrupt, insolvent, or decedents' 
estates ; to determine the character of and the necessity for its obliga- 
tions and expenditures, and tlie m.anner in which they shall be in- 
curred, allowed, and paid, subject to provisions of law specifically 
applicable to Government corporations; and to take such actions as 
may be necessary or appropriate to carry out the powers herein or 
hereafter specifically conferred upon it. 

(e) The Auditor- General of the Agency for International Develop- 
ment (1) shall have the responsibility for planning and directing the 
execution of audits, reviews, investigations, and inspections of all 
phases of the Corporation's operations and activities and (2) shall 
conduct all security activities of the Corporation relating to personnel 
and the control of classified material. With respect to his responsi- 
bilities under this subsection, the Auditor-General shall report to the 
Board. The agency primarily responsible for administering part I 
shall be reimbursed by the Corporation for all expenses incurred by 
the Auditor-General in connection with his responsibilities under this 
subsection. 

(f ) In order to further the purposes of the Corporation there shall 
be established an Advisory Council to be composed of such representa- 
tives of the American business community as may be selected by the 
Chairman of the Board. The President and the Board shall, from time 
to time, consult with such Council concerning the objectives of the 
Corporation. Members of the Council shall receive no compensation 
for their services but shall be entitled to reimbursement in accordance 
with section 5703 of title 5 of the United States Code for travel and 
other expenses incurred by them in the performance of their functions 
under this section. 

(g) Except for the provisions of this title, no other provision of 
this or any other law shall be consti-ued to prohibit the operation in 
Yugoslavia or Romania of the programs authorized by this title, if 
the President detei-mines that the operation of such program in such 
country is important to the national interest. 

(h) Within six months after the date of enactment of this sub- 
section, the Corporation shall develop and implement specific criteria 
intended to minimize the potential environmental implications of proj- 
ects undertaken by investors abroad in accordance with any of the pro- 
gi'ams authorized by this title. 

Sec. 240.^^<' * * * [Repealed— 1974] 

Sec. 240A.^'5i Reports to the Congress.— (a) After the end of each 
fiscal year, the Corporation shall submit to the Congress a complete 
and detailed report of its operations during such fiscal year. 

1^ Subsection (g) was added by Sec. 104(b) of the FAAct of 1971. 

^Subsection (h) was added by Sec. 2(5) (B) of the Overseas Private Investment Cor- 
poration Amendments Act of 1974 (Public Law 93-390) 

i«> S€c. 8(b) of the FAAct of 1974 struck out former Sec. 240 which related to agricul- 
tural credit and self-help communitv development projects. 

i«i 22 use 2200a. Sec. 240A was added by Sec. 105 of the FAAct of 1969. 



50 



(b) ;^ot later than January 1, 1976, the Corporation shall submit 
to the Congress an analysis of the possibilities of transferring all of its 
activities to private insurance companies, multilateral organizations 
and institutions, or other entities. 

Title V-— Development Research 

Sec. General Authority.—* * * [Eepealed— 1975] 

Title VI— Alliance for Progress^" 

Sec. 251.^^^ General Authority. — (a) It is the sense of the Congress 
that the historic, economic, political and geographic relationships 
among the American peoples and Republics are unique and of special 
significance and that the Alliance for Progress offers great hope for 
the advancement of the welfare of the peoples of the Americas and the 
strengthening of the relationships among them. It is further the sense 
of Congress that vigorous measures by the countries and areas of Latin 
America to mobilize their own resources for economic development 
and to adopt reform measures to spread the benefits of economic prog- 
ress among the people are essential to the success of the Alliance for 
Progress and to continued significant United States assistance there- 
under. The President is authorized to furnish assistance on such terms 
and conditions as he may determine in order to promote the economic 
development of countries and areas in Latin America. 

(b) Assistance furnished under this title shall be directed toward 
the development of human as well as economic resources. In furnishing 
assistance under this title, the President shall take into account (1) 
the principles of the Act of Bogota and the Charter of Punta del 
Este,^^^ and in particular the extent to which the recipient country or 
area is showing a responsiveness to the vital economic, political, and 
social concerns of its people and demonstrating a clear determination 
to take effective self-help measures; (2) the economic and technical 
soundness of the activity to be financed; (3) the consistency of the 
activity with, and its relationship to, other development activities 
being undertaken or planned, and its contribution to realizable long- 
range objectives; (4) the possible effects upon the United States 
economy, with special reference to areas of substantial labor surplus, 
of the assistance involved; (5) the degree to which the recipient coun- 
try is making progi'ess toward respect for the rule of law, freedom of 



Subsection (b) was amended by Sec. 2(7) of the Overseas Private Investment Cor- 
poration Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: "Not 
later than March 1, 1974. the Corporation shall submit to the Congress an analysis of 
the possibilities of transferring all or part of its activities to private United States 
citizens, corporations, or other associations'". 

Sec. 306(1) of Public Law 94-161 (S9 Stat. 849) repealed Sec. 241. It formerly read 
as follows: "Sec. 241. General Authority. — (a) The President is authorized to use funds 
made available for this part to carry out programs of research into, and evaluation of, the 
process of economic development in less developed friendly countries and areas, into the 
factors affecting the relative success and costs of development activities, and into the 
means, techniques, and such other aspects of development assistance as he may determine 
in order to render such assistance of increasing value and benefit, (b) Funds made availa- 
ble to carry out this section may be used to conduct research into the problems of 
population crro.vth." 

Title VI was added by Sec. 106 of the FAAct of 1962. 

22 use 2211. 
160 For text, see page 1148. 

167 For text, see page 1154. 

168 Sec. 105(a) (1) of the FAAct of 1966 struck out the word "and" which appeared at 
the end of clause (3), substituted the semicolon for a period at the end ol clause (4), and 
added clauses (5), (6), (7), and (8). 



51 



expression and of the press, and recognition of the importance of in- 
dividual freedom, initiative, and private enterprise; (6) the degree to 
which the recipient country is taking steps to improve its climate for 
private investment; (7) whether or not the activity to be financed will 
contribute to the achievement of self-sustaining growth; and (8) the 
extent to which the activity to be financed will contribute to the eco- 
nomic or political integration of Latin America. In making loans 
under this title from funds which are required to be used for loans- 
payable as to principal and interest in United States dollars, the 
President shall take into account, in addition to the considerations 
named in the preceding sentence, whether financing could be obtained 
in whole or in part from other free world sources on reasonable terms 
(including private sources within the United States), the capacity of 
the recipient country to repay the loan at a reasonable rate of inter- 
est,^^^ and the efforts made by recipient nations to repatriate capital 
invested in other countries by their own citizens. The provisions of 
sections 201(d), 202(b), 202(c), and 204 shall be applicable to such 
loans, and they shall be made only upon a finding of reasonable pros- 
pects of repayment. 

(^c) The authority of section 614(a) may not be used to waive the re- 
quirements of this title with respect to funds made available for this 
title which are required to be used for loans payable as to principal and 
interest in United States dollars, and the authority of section 610 may 
be used to transfer such funds only to funds made available for title I 
of chapter 2 of part I. 

(d) ^ In order to carry out the policies of this Act and the purpose of 
this title, the President shall, when requested by a friendly country 
and when appropriate, assist in fostering measures of agrarian reform, 
including colonization and redistribution of land, with a view to insur- 
ing a wider and more equitable distribution of the ownership of land. 

(e) The President shall not allocate, reserve, earmark, commit, or 
otherwise set aside, funds aggregating in excess of $100,000 for use in 
any country under this title unless (1) an application for such funds 
has been received for use in such country together with sufficient in- 
formation and assurances to indicate reasonably that the funds will be 
used in an economically and technically sound manner, or (2) the 
President determines with respect to each such allocation, reservation, 
earmarkmg, commitment, or set-aside that it is in the national interest 
to use such funds pursuant to multilateral plans. 

(f ) In furnishing assistance under this title, consistently with and 
for the purposes of section 601 (b) (4) of this Act, the agency primarily 
responsible for administering part I ^'^ or any other departments and 
agencies designated by the President shall provide such assistance as 
may be determined by the President to be necessary from time to time 

K% ^^^^ effective the efforts of the Commerce Committee for 
the Alliance for Progress, established under the Department of 
Commerce. 

hjlec^VlnV^^^^ "Including private sources" were Inserted 

Slop Vi?aWrVs 0* P?^ substituted "economically" for "economlcar'. 

rp«L!.c^Mi^*^^^^^/^ FAAct of 1963 substituted the words "agency primarily 

^sponsible for administering part I" for the words "Agency for International DeveloiJ- 



52 



(g) "2 In order to carry out the policies of this Act, the President 
shall, when appropriate, assist in promoting the organization, imple- 
mentation, and growth of the cooperative movement in Latin America 
as a fundamental measure toward the strengthening of democratic in^ 
stitutions and practices and ecouomic and social development under 
the Alliance for Progress. 

(h) ^'^ Loans may be made under authority of this title only for 
social and economic development projects and programs which are 
consistent with the findings and recommendations of the Inter- Ameri- 
can Committee for the Alliance for Progress in its annual review of 
national development activities. Whenever the President determines 
that the purposes of this title would be better served thereby, he may 
malve available, in addition to any other funds available for such pur- 
poses, on such terms and conditions as he determines, not to exceed 15 
per centum of the funds made available for this title to the Inter- Amer- 
ican Development Bank, or to any of the institutions named in section 
205 (other than the Asian Development Bank),^^* for use in Latin 
America pui*suant to the laws governing United States participation 
in the said Bank or in such institutions and the governing statutes 
thereof and w^ithout regard to section 201 or any other requirements 
of this or any other Act. 

Sec. 252.^'^ Authorization. — (a) ^'^ There is authorized to be appro- 
priated to the President for the purposes of this title, in addition to 
other funds available for such purposes, for the fiscal year 1972, $295,- 
000,000,1'S and for the fiscal year 1973, $295,000,00,i^» which amounts 
are authorized to remain available until expended, and which amounts, 
except for not to exceed $88,500,00 for each such fiscal year, shall 
be available ojily for loans payable as to principal and interest in 
United States dollars. In order to effectuate the purposes and provi* 
sions of sections 102, 251, 601, and 602 of this Act, not less than 50 per 
centum of the loan funds appropriated pursuant to this section for any 
fiscal year shall be available for loans made to encourage economic de- 
velopment through private enterprise. 



i"2 Subjection (g) was added by Sec. 106(a) (4) of the FAAct of 1963. 

1-3 Subsection (h) was added by Sec. 105(a)(2) of the PAAet of 1966. Sec. 110 of the 
FA Appropriation Act, 1975, prohibits the use of funds contained In Title I of that Act 
to carry ont the provisions of sections 209(d) and 251(h) of this Act. 

The parenthetical phrase was added by See. 106(a) (1) of the FAAct of 1967. 

J"" The words "in Latin America" were added by Sec. 106(a)(2) of the FAAct of 1967. 

i'« 22 use § 2212. 

"'Subsection designation "(a)" was added by Sec. 106(b)(4) of the FAAct of 1967. 
Subsection (a) was amended by Sec. 106 of the FAAct of 1969. It formerly read as fol- 
lows : "(a) There is hereby authorized to be appropriated to the President for the pur- 
poses of this title, In addition to other funds available for such purposes, for the fiscal 
year 1969, $420,000,000, which Is authorized to remain available until expended and 
which, except for not to exceed $90,000,000, shall be available only for leaps payal>le as 
to principal and Interest in United States dollars. In order to effectuate the purposes 
and provisions of sections 102, 251, 601, and 602 of this Act. not less than 50 per centum 
of the loan funds appropriated pursuant to this section for the fiscal year ending June 30, 
1969, shall be available for loans made to encourage economic development through private 
enternrise." 

^'^ FA Appropriation Act, 1972 : Alliance for Progress, technical assistance : $80,000,- 
000 : Provided, That no part of this appropriation shall be used to initiate any project 
or activity which has not been justified to the Congress." Alliance for Progress develop- 
ment loans : $150,000,000, together with such amounts as are provided for under sec- 
tion 203, all such amounts to remain available until exnended." 

I'^The words "for the fiscal vear 1972, .?295, 000,000, and for the fiscal year 1978, 
$295,000.000" were substituted in lieu of "for the fiscal year 1970, $428,250,000, and 
for the fiscal year 1971, $428,250,000" by Sec. 105(1) of the FAAct of 1971. 

"oSec. 105(2) of the FAAct of 1971 substituted '^$88,500,000" In lieu of "$90,750,000". 



53 



(b) There are authorized to be appropriated to the President for 
the fLscaJ year 1974,^^^ $934,000, and for the fiscal year 1975, $934,000, 
for grants to the National Association of the Partners of the Alliance, 
Inc., in accordance with the purposes of this title. 

Sec. 253.'^^ Fiscal Provisions. — All receipts in United States 
dollars from loans made under this title and from loans made for the 
benefit of countries and areas of Latin America under title I of chap- 
ter 2 of part I of this Act, notwithstanding section 203, shall be avail- 
able for use for loans payable as to principal and interest in United 
States dollars in furtherance of the purposes of this title.^^* All receipts 
in foreign currencies from loans made under this title or for nonmili- 
tary assistance purposes under the Mutual Security Act of 1954, as 
amended, or any Act repealed thereby, shall be available, in addition 
to other funds available for such purposes, for loans on such terms and 
conditions as the President may specify to carry out the purposes of 
subsection (g) of section 251 of this title, and the President may, not- 
withstanding the provisions of this or any other Act, reserve such cur- 
rencies in such amounts (not to exced $25,000,000) as he shall deter- 
mine to be necessary to provide for the programs authorized by said 
subsection (g).^^"' Such receipts and other fimds made available under 
this title for use for the purposes of this title shall remain available 
until expended. 

Title VII—Evaluation ef Programs 

Sec. 261.^®^ The President may appoint a committee to review and 
evaluate the economic development program under this Act, and to 
report to the President and to the Congress its findings. 

Title VIII — Southeast Asia Multilateral and Regional Programs ^* 

Sec. 271.^^^ General Provisions. — The acceleration of social and 
economic progress in southeast Asia is important to the achievement of 
the United States foreign policy objectives of peace and stability in 
that area. It is the sense of Congress that this objective would be served 
by an expanded effort by the countiies of southeast Asia and other in- 
terested countries in cooperative programs for social and economic de- 
velopment of the region, employing both multilateral and bilateral 
channels of assistance. 

Sec. 272.^^° Special Provisions. — In providing assistance to further 
the purposes of this title the President shall take into account : 

(1) initiatives in the field of social and economic development 
by Asian peoples and institutions ; 

Subsection (b) was added by Sec. 106(b)(4) of the FAAct of 1967. It was amended 
by Sec. 7 of the FAAct of 1973 and formerly read as follows : "(b) There Is hereby author- 
ized to be appropriated to the President for the fiscal year 1969, S350,000 for grants to 
carry out programs and activities of the Partners of the Alliance in accordance with the 
purpose of this title." 

^ FA Appropriations Act, 1975 : "For necessary expenses to carry out the provisions of 
section 106, $37,000,000 of which not more than $500,000 shall be available for the Na- 
tional Association of the Partners of the Alliance, Inc. * * 

-«22 use § 2213. 

i^See appropriation for Alliance for Progress development loans in FA Appropriation 
.^.l^J."^' P^se 192, and Sec. 117 of the FA Appropriation Act of 1964. box note page 201. 

This sentence was added by Sec. 106(c) of the FAAct of 1963. 
i» Title VII was added by Sec. 107 of the FAAct of 1963. 

18, use I 216. For other reports required to be submitted to Congress, see Reports to 
Congress, Index. 

J2?2^U^^?'52i7^*^^^^ by See. 106 of the FAAct of 1966. 

^ 22 use § 2217a. 



54 



(2) regional economic cooperation and integration in south- 
east Asia ; 

(3) the extent of participation by other potential donor 
countries; 

(4) the degree of peacefull cooperation among the countries of 
southeast Asia toward the solution of common problems ; and 

(5) the ability of multilateral institutions or other administer- 
ing authorities to cary out projects and programs effectively, 
efficiently, and economically.^^^ 

Title IX— Utilization of Democratic Institutions in Development^ 

Sec. 281.^^^ (a) In carrying out programs authorized in this 
chapter, emphasis shall be placed on assuring maximum participation 
in the task of economic development on the part of the people of the 
developing countries, through the encouragement of democratic pri- 
vate and local governmental institutions. 

(b) In order to carry out the purposes of this title, programs 
under this chapter shall — 

(1) recognize the differing needs, desires, and capacities of the 
people of the respective developing countries and areas ; 

(2) use the intellectual resources of such countries and areas 
in conjunction with assistance provided imder this Act so as to 
encourage the development of indigenous institutions that meet 
their particular requirements for sustained economic and social 
progress ; and 

(3) support civic education and training in skills required for 
effective participation in governmental and political processes 
essential to self-government. 

(c) In the allocation of funds for research under this chapter, 
emphasis shall be given to research designed to examine the political, 
social, and related obstacles to development in countries receiving as- 
sistance under part I of this Act. In particular, emphasis should be 
given to research designed to increase understanding of the ways in 
wliich development assistance can support democratic, social and 
political trends in recipient countries.^^^ 

(d) Emphasis shall also be given to the evaluation of relevant 
past and current programs under part I of this Act and to applying 
this experience so as to strengthen their effectiveness in implementing 
the objectives of this title. 

(e) In order to carry out the purposes of this title, the agency 
primarily responsible for administering part I of this Act, shall 
develop systematic programs of inservice training to familiarize its 
personnel with the objectives of this title and to increase their knowl- 

"1 Sec. 273 was struck out by Sec. 107 of the FAAct of 1967. It read as follows : 

"Sec. 273. Authorization. — The President is authorized to utilize not to exceed 
$10,000,000 of the funds otherwise available to carry out the provisions of part I of this 
Act (other than title VI of this chapter) to furnish assistance under this title on such 
terms and conditions as he may determine, in order to promote social and economic devel- 
opment and stability in southeast Asia." 

"2 Title IX was added by Sec. 106 of the FAAct of 1966. 

"3 22 use § 2218. 

i»* Subsection desijrnation "(a)" and subsections (b), (c) and (d) were added by Sec. 108 
of the FAAct of 1967. 

The last sentence was added by Sec. 106(a) of the FAAct of 1968. 
Subsection (e) was added by Sec. 106(b) of the FAAct of 1968, 



55 



edge of the political and social aspects of development. In addition to 
other funds available for such purposes, not to exceed 1 per centum 
of the funds authorized to be appropriated for grant assistance under 
this chapter may be used for carrying out the objectives of this sub- 
section. 

Title X— Programs Relating to Population Growth ^ 

Sec. 291.^^^ General Provisions. — (a) It is the sense of the Con- 
gress that, while every nation is and should be free to determine its 
own policies and procedures with respect to problems of population 
growth and family planning within its own boundaries, nevertheless, 
voluntary family planning programs to provide individual couples 
with the knowledge and medical facilities to plan their family size 
in accordance with their own moral convictions and the latest medical 
information, can make a substantial contribution to improve health, 
family stability, greater individual opportunity, economic develop- 
ment,' a sufficiency of food, and a higher standard of living. 

(b) To carry out the intent of Congress as expressed in subsection 
(a), the President is authorized to provide assistance for programs 
relating to population growth in friendly countries and areas, on such 
terms and conditions as he shall determine, to foreign governments, 
the United Nations, its specialized agencies, and other international 
organizations and programs. United States and foreign nonprofit or- 
ganizations, universities, hospitals, accredited health institutions, and 
voluntary health or other qualified organizations. 

(c) In carrying out programs authorized in this title, the 
President shall establish reasonable procedures to insure, when- 
ever family-planning assistance from the United States is involved, 
that no individual will be coerced to practice methods of family 
planning inconsistent with his or her moral, philosophical, or re- 
ligious beliefs. 

(d) As used in this title, the term "programs relating to population 
growth'' includes but is not limited to demographic studies, medical, 
psychological, and sociological research and voluntary family plan- 
ning programs, including personnel training, the construction and 
staffiiig of clinics and rural health centers, specialized training of 
doctors and paramedical personnel, the manufacture of medical sup- 
plies, and the dissemination of family-planning information, and 
provision of medical assistance and supplies. 

Sec. 292.1^9 Authorization. — Of the funds provided to carry out 
the provisions of part I of this Act for the fiscal year 1974, $125,- 
000.000 and for the fiscal year 1975, $150,000,000 shall be available 
in each such fi^scal year only to carry out the purposes of this title, 
and, notwithstanding any other provisions of this Act, funds used 
for such purposes may be used on a loan or grant basis. 

I" Title X was added by Sec. 109 of the FAAct of 1967. 
198 22 use § 2219. 

22 use § 2219a. Sec. 106 of the FAAct of 1971 amended this section, which formerly 
read as follows : "Sec. 292. Authorization. — Of the funds provided to carrv out the pro- 
visions of part I of this Act for the fiscal year 1970, $75,000,000, and for the fiscal year 
19(1. 8100,000.000 shall be available only to carry out the purposes of this title and, 
notwithstanding any other provision of this Act, funds used for such purposes may be used 
on a loan or grant basis." 

FA Appropriations Act, 1972 : $125,000,000. 

«»Sec. 4(2) of the FAAct of 1974 substituted "$150,000,000" In lieu of "$130,000,000". 



56 



Title XI— Food Production Targets and Reports^ 
Sec. 295.-^2 Food Production Targets and Reports. — In making 

ibis recommendation to the Congress for programs for the fiscal year 
1969 and each fiscal year thereafter, wherever appropriate, the Presi- 
dent shall, for each country receiving assistance under this Act which 
he finds has a substantial food deficit, include — 

(1) descriptions of proposed programs, if any, in the areas 
of food production, storage, and distribution, and voluntary 
family planning; 

(2) information on achievement targets in food production, 
storage, and distribution, and their relationship to expected 
changes in total population ; and 

(3) a detailed report on progress with respect to food produc- 
tion, storage, and distribution, and the relationship of this pro- 
gress to population. 

Title XII — Famine Prevention and Freedom From Hunger 

Sec. 296.2°^ General Provisions. — (a) The Congress declares that, 
in order to prevent famine and establish freedom from hunger, the 
United States should strengthen the capacities of the United States 
land-grant and other eligible universities in program-related agri- 
cultural institutional development and research, consistent with sec- 
tions 103 and 103A, should improve their participation in the United 
States Government's international efforts to apply more effective agri- 
cultural sciences to the goal of increasing world food production, and 
in general should provide increased and longer term support to the 
application of science to solving food and nutrition problems of the 
developing countries. 

The Congress so declares because it finds — 

(1) that the establishment, endowment, and continuing support 
of land-grant universities in the United States by Federal, State, 
and county governments has led to agricultural progress in this 
country ; 

(2) that land-gTant and other universities in the United 
States have demonstrated over many j^ears their ability to coop- 
erate with foreign agricultural institutions in expanding indig- 
enous food production for both domestic and international 
markets ; 

(3) that, in a world of growing population with rising expec- 
tations, increased food production and improved distribution, 
storage, and marketing in the developing countries is necessary 
not only to prevent hunger but to build the economic base for 
growth, and moreover, that the gi-eatest potential for increasing 
world food supplies is in the developing countries where the 
gap between food need and food supply is the greatest and cur- 
rent yields are lowest ; 



Title XI was added by Sec. 109 of the FAAct of 1967. 
22 use § 2220. 

208 22 use 2220a. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Title XII and 
new Sec. 296. 



57 



(4) that increasing and making more secure the supply of food 
is of greatest benefit to the poorest majority in the developing 
world; 

(5) that research, teaching, and extension activities, and appro- 
priate institutional development therefor are prime factors in 
increasing agricultural production abroad (as well as in the 
United States) and in improving food distribution, storage, and 
marketing ; 

(6) moreover, that agricultural research abroad has in the 
past and will continue in the future to provide benefits for agri- 
culture in the United States and that increasing the availability 
of food of higlier nutritional quality is of benefit to all ; and 

(7) that imiversities need a dependable source of Federal 
funding, as well as other financing, in order to expand, or in some 
cases to continue, their efforts to assist in increasing agricultural 
production in developing countries. 

(b) Accordingly, the Congress declares that, in order to prevent 
famine and establish freedom from hunger, various components must 
be brought together in order to increase world food production, 
including — 

(1) strengthening the capabilities of universities to assist in 
increasing agricultural production in developing countries; 

(2) institution-building programs for development of na- 
tional and regional agricultural reseiirch and extension capacities 
in developing countries which need assistance ; 

(3) international agricultural research centers; 

(4) contract research ; and 

(5) research program grants. 

(c) The United States should— 

(1) effectively involve the United States land-grant and other 
eligible universities more extensively in each component: 

(2) provide mechanisms for the universities to participate 
and advise in the planning, development, implementation, and 
administration of each component ; and 

(3) assist such universities in cooperative joint efforts with — 

A) agricultural institutions in developing nations, and 

B) regional and international agricultural research 
centers, 

directed to strengthening their joint and respective capabilities 
and to engage them more effectively in research, teaching, and 
extension activities for solving problems in food production, dis- 
tribution, storage, marketing, and consumption in agriculturally 
underdeveloped nations. 

(d) As used in this title, the term "universities" means those col- 
leges or universities in each State, territory, or possession of the United 
States, or the District of Columbia, now receiving, or which may 
hereafter receive, benefits under the Act of Julv 2, 1862 (known as 
the First ]\[orrill Act), or the Act of August 30, 1890 (known as 
the Second Morrill Act) , which are commonly known as "land-grant" 
universities: institutions now designated or which may hereafter be 
designated as sea-grant colleges under the Act of October 15, 1966 
(known as the National Sea Grant College and Program Act) , which 



58 



are commonly known as sea-grant colleges; and other United States 
.colleges and universities which — 

(1) have demonstrable capacity in teaching, research, and ex- 
tension activities in the agricultural sciences ; and 

(2) can contribute effectively to the attainment of the objective 
of this title. 

(e) As used in this title, the term "Administrator" means the 
Administrator of the Agency for International Development. 

(f ) As used in this title, the term "agriculture" shall be considered 
to include aquaculture and fisheries. 

(g) As used in this title, the term "farmers" shall be considered to 
include fishermen and other persons employed in cultivating and har- 
vesting food resources from salt and fresh waters. 

Sec. 297.^°* General Authority. — (a) To carry out the purposes of 
this title, the President is authorized to provide assistance on such 
terms and conditions as he shall determine — 

(1) to strengthen the capabilities of universities in teaching, 
research, and extension work to enable them to implement current 
programs authorized by paragraphs (2), (3), (4), and (5) of this 
subsection, and those proposed in the report required by section 
300 of this title; 

(2) to build and strengthen the institutional capacity and hu- 
man resources skills of agriculturally developing countries so that 
these countries may participate more fully in the international 
agricultural problem-solving effort and to introduce and adapt 
new solutions to local circumstances ; 

(3) to provide program support for long-term collaborative 
university research on food production, distribution, storage, mar- 
keting, and consump)tion ; 

(4) to involve universities more fully in the international net- 
work of agricultural science, including the international research 
centers, the activities of international organizations such as the 
United Nations Development Program and the Food and Agri- 
culture Organization, and the institutions of agriculturally de- 
veloping nations ; and 

(5) to provide program support for international agricultural 
research centers, to provide support for research projects identi- 
fied for specific problem-solving needs, and to develop and 
strengthen national research systems in the developing countries. 

(b) Programs under this title shall be carried out so as to — 

(1) utilize and strengthen the capabilities of universities in — 

(A) developing capacity in the cooperating nation for class- 
room teaching in agriculture, plant and animal sciences, hu- 
man nutrition, and vocational and domestic arts and other 
relevant fields appropriate to local needs ; 

(B) agricultural research to be conducted in the cooperat- 
ing nations, at international agricultural research centers, or 
in the United States ; 

(C) the planning, initiation, and development of extension 
services through which information concerning agriculture 



»M22 use 2220b. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Sec. 297. 



59 



and related subjects will be made available directly to farmers 
and farm families in the agriculturally developing nations by 
means of education and demonstration ; or 

(D) the exchange of educators, scientists, and students for 
the purpose of assisting in successful development in the co- 
operating nations ; 

(2) take into account the value to the United States agriculture 
of such programs, integrating to the extent practicable the pro- 
grams and financing authorized under this title with those sup- 
ported by other Federal or State resources so as to maximize the 
contribution to the development of agriculture in the United States, 
and in agriculturally developing nations ; and 

(3) whenever practicable, build on existing programs and insti- 
tutions including those of the universities and the United States- 
Department of Agriculture and the United States Department of 
Commerce. 

(c) To the maximum extent practicable, activities under this section 
shall (1) be designed to achieve the most effective interrelationship 
among the teaching of agricultural sciences, research, and extension 
work, (2) focus primarily on the needs of agricultural producers, (3) 
be adapted to local circumstances, and (4) be carried out within the 
developing countries. 

(d) Tlie President shall exercise his authority under this section 
through the iVdministrator. 

Sec. 298,2°^ Board for International Food and Agricultural De- 
velopment. — (a) To assist in the administration of the programs 
authorized by this title, the President shall establish a permanent 
Board for International Food and Agricultural Development (here- 
after in this title referred to as the "Board") consisting of seven mem- 
bers, not less than four to be selected from the universities. Terms of 
members shall be set by the President at the time of appointment. 
Members of the Board shall be entitled to such reimbursement for 
expenses incurred in the performance of their duties (including per 
diem in lieu of subsistence while away from their homes or regular 
place of business) as the President deem.s appropriate. 

(b) The Board's general areas of responsibility shall include, but 
not be limited to — 

(1) participating in the planning, development, and imple- 
mentation of, 

( 2 ) initiating recommendations for, and 

(3) monitoring of, 

the activities described in section 297 of this title. 

(c) The Board's duties shall include, but not necessarily be limited 
to — 

(1) participating in the formulation of basic policy, proce- 
dures, and criteria for project proposal review, selection, and 
monitoring ; 

(2) developing and keeping current a roster of universities — 
(A) interested in exploring their potential for collabora- 
tive relationships with agricultural institutions, and with 
scientists working on significant programs designed to in- 
crease food production in developing countries, 



22 use 2220c. Sec. 312 of Public Law 94-161 (89 Stat. 849) addfed Sec. 299. 



m 



(B) having caj>aeity in the agricultural sciences, 

(C) able to maintain an appropriate balance of teaching, 
research, and extension functions, 

(D) having capacity, experience, and commitment with 
respect to international agricultural efforts, and 

(E) able to contribute to solving the problems addressed 
by this title; 

( 3 ) recommending which developing nations could benefit from 
programs carried out under this title, and identifying those na- 
tions which have an interest in establishing or developing agri- 
cultural institutions which engage in teaching, research, or exten- 
sion activities ; 

(4) reviewing and evaluating memorandums of understanding 
or other documents that detail the terms and conditions between 
the Administrator and universities participating in programs 
under this title ; 

(5) reviewing and evaluating agreements and activities author- 
ized by this title and undertaken by universities to assure com- 
pliance with the purposes of this title ; 

(6) recommending to the Administrator the apportionment of 
funds under section 297 of this title ; and 

(7) assessing the impact of programs carried out under this 
title in solving agricultural problems in the developing nations. 

'(d) Tlie President may authorize the Board to create such subordi- 
nate units as may be necessary for the performance of its duties, includ- 
ing but not limited to the following : 

(1) a Joint Research Committee to participate in the adminis- 
tration and development of the collaborative activities described 
in section 297(a) (3) of this title ; and 

(2) a Joint Committee on Country Programs which shall assist 
in the implementation of the bilateral activities described in sec- 
tions 297(a)(2), 297(a)(4), and 297(a)(5). 

(e) In addition to any other functions assigned to and agreed to by 
the Board, the Board shall be consulted in the preparation of the 
annual report required by section 300 of this title and on other agricul- 
tural development activities related to programs under this title. 

Sec. 299.-*^^ Authorization. — (a) The President is authorized to 
use any of the funds hereafter made available under section 103 of this 
Act to carry out the purposes of this title. Funds made available for 
such purposes may be used without regard to the provisions of sec- 
tions 110(b) , 211(a), and 211(d) of this Act. 

(b) Foreign currencies owned by the United States and determined 
by the Secretary of the Treasury to be excess to the needs of the 
United States shall be used to the maximum extent possible in lieu of 
dollars in carrying out the provisions of this title. 

(c) Assistance authorized under this title shall be in addition to any 
allotments or grants that may be made under other authorizations. 

(d) Universities may accept and expend funds from other sources, 
public and private, in order to carrj^ out the purposes of this title. All 
such funds, both prospective and inhand, shall be periodically dis- 



use 2220(1. Sec. 312 of Public Law 94-161 (89 Stat. 849) added Sec. 299. 



61 



closed to the Administrator as he shall by regulation require, but no 
less often than in an annual report. 

Sec. 300."°' Annual Report. — The President shall transmit to the 
Congress, not later than April 1 of each year, a report detailing the 
activities carried out pursuant to this title during the preceding fiscal 
year and containing a projection of programs and activities to be 
conducted during the subsequent five fiscal years. Each report shall 
contain a summary of the activities of the Board established pursuant 
to section 298 of this title and may include the separate views of the 
Board with respect to any aspect of the programs conducted or pro- 
posed to be conducted under this title. 

Chapter 3 — International Organizations and Programs 

Sec. 301.-°^ General Authority. — (a) \^nien he determines it to be 
in the national interest, the President is authorized to make volun- 
tary contributions on a grant basis to international organizations and 
to programs administered by such organizations, and in the case of 
the Indus Basin Development Fund administered by the Interna- 
tional Bank for Keconstruction and Development to make grants 
and loans payable as to principal and interest in United States dol- 
lars and subject to the provisions of section 201 (d),^^^ on such terms 
and conditions as he may determine, in order to further the purposes 
of this part. 

(b) Contributions to the United Nations Development Program 
for the calendar years succeeding 1961 may not exceed forty per 
centum of the total amount contributed for such purpose (including 
assessed and audited local costs) for each such year. The President 
shall seek to assure that no contribution to the United Nations Develop- 
ment Program authorized by this Act shall be used for projects for 
economic or technical assistance to the Government of Cuba, so long 
as Cuba is governed by the Castro regime.^^^ 

(c) No contributions by the United States shall be made to the 
United Nations Relief and Works Agency for Palestine Refugees in 
the Near East except on the condition that the United Nations Relief 
and Works Agency take all possible measures to assure that no part 
of the United States contribution shall be used to furnish assistance to 
any refugee who is receiving military training as a member of the so- 
called Palestine Liberation Army or any other guerrilla type organiza- 
tion or who has engaged in any act of terrorism. 



2<^22 use 2220e. Sec. 312 of Public Law 94-161 (S9 Stat. 849) added Sec. 300. 
22 use 2221. 

2<» The words to this point, beginning; with and in the case of the Indus", were added 
by See. 107(a) of the FA Act of 1966. 

Sec. 107(b) of the FAAct of 19G6 substituted "United Nations Development Pro- 
gram" in lieu of "United Nations Expanded Program of Technical Assistance and the 
United Nations Special Fund", and also added the last sentence. 

2u Subsection (o) was amended by See. 108(a) of the FAAct of 1969. It formerly read 
as follows "(c) In determining whether or not to continue furnishing assistance for 
Palestine refugees in the Near East through contributions to the United Nations Relief 
and Works Agency for Palestine Refugees in the Near East, the President shall take 
Into account (1) whether Israel and the Arab host governments are taking steps toward 
the resettlement and repatriation of such refugees, and (2) the extent and success of 
efforts by the Agency and the Arab host governments to rectify the Palestine refugee 
relief rolls. Contributions by the United States for the fiscal year 1967 shall not exceed 
$13,300,000. No contributions under this subsection shall be made except on the condi- 
tion that the United Nations Relief and Works Agency take all possible measures to 
assure that no part of the United States contribution shall be used to furnish assist- 
ance to any refugee who is receiving military training as a member of the so-called 
Palestine Liberation Army." 



62 



(d) In any case in which a fund established solely by United 
States contributions under this or any other Act is administered by an 
international organization under the terms of an agreement between 
the United States and such international organization, such agreement 
shall provide that the Comptroller General of the United States shall 
conduct such audits as are necessary to assure that such fund is ad- 
ministered in accordance with such agreement. The President shall 
undertake to modify any existing agreement entered into before the 
date of enactment of this subsection to conform to the requirements of 
the preceding sentence, 

(e) (1) In the case of the United Nations and its affiliated orga- 
nizations, including the International Atomic Energy Agency, the 
President shall, acting through the United States representative to 
such organizations, propose and actively seek the establishment by the 
governing authorities of such organizations a single professionally 
qualified group of appropriate size for the purpose of providing an 
independent and continuous program of selective examinations, re- 
view, and evaluation of the programs and activities of such organiza- 
tions. Such proposal shall provide that such group shall be established 
in accordance with such terms of reference as such governing authority 
may prescribe and that the reports of such group on each examination, 
review, and evaluation shall be submitted directly to such governing 
authority for transmittal to the representative of each individual mem- 
ber nation. Such proposal shall further include a statement of auditing 
and reporting standards, as prepared by the Comptroller General of 
the United States, for the consideration of the governing authority 
of the international organization concerned to assist in formulating 
terms of reference for such review and evaluation group. 

(2) In the case of the International Bank for Reconstruction and 
Development and the Asian Development Bank, the President shall, 
acting through the United States representative to such organizations, 
propose and actively seek the establishment by the governing authori- 
ties of such organizations professionally qualified groups of ap- 
propriate size for the purpose of providing an independent and con- 
tinuous program of selective examination, review, and evaluation of 
the programs and activities of such organizations. Such proposal shall 
provide that such groups shall be established in accordance with such 
terms of reference as such governing authorities may prescribe, and 
that the reports of such groups on each examination, review, and 
evaluation shall be submitted directly to such governing authority for 
transmittal to the representative of each individual member nation. 
Such proposal shall further include a statement of auditing and re- 
porting standards, as prepared by the Comptroller General of the 
United States, for the consideration of the governing authority of the 
international organization concerned to assist in formulating terms of 
reference for such review and evaluation groups. 

(3) Reports received by the United States representatives to these 
international organizations under this subsection and related informa- 
tion on actions taken as a result of recommendations made therein shall 
be submitted promptly to the President for transmittal to the Congress 
and to the Comptroller General. The Comptroller General shall peri- 
odically review such reports and related information and shell report 



Subsection fd) was aflded by Sec. 110(a) of the FAAct of 1967. 
Subsection (e) was added by Sec. 9(1) of the FAAct of 1973. 



63 

simultaneously to the Congress and to the President any suggestions 
the Comptroller General may deem appropriate concerning auditing 
and reporting standards followed by such groups, the recommenda- 
tions made and actions taken as a result of such recommendations.-'^* 

(f)2i5 Xhe President is hereby authorized to permit United States 
participation in the International Fertilizer Development Center and 
is authorized to use any of the funds made available under this part 
for the purpose of furnishing assistance to the Center on such terms 
and conditions as he may determine. 

Sec. 302.-^^ Authorization. — (a) (1)^^^ There is authorized to be ap- 
propriated to the President for grants to carry out the purposes of this 
chapter, in addition to funds available under any other Acts for such 
purposes, for the fiscal year 1974, S127,822.000 and for the fiscal vear 
1975, $165,000,000,-1^ and for the fiscal year 1976, 8194,500,000 and for 
the fiscal year 1977, $219,900,000. Of such amounts, not to exceed 
$250,000 during the fiscal year 1976 shall be available for contribution 
to the Namibia Institute. 

(2) The Congress reaffirms its support for the work of the Inter- 
American Commission on Human Rights. To permit such Commission 
to better fulfill its function of insuring observance and respect for 
human rights within this hemisphere, not less than $357,000 of the- 
amount appropriated for fiscal year 1976 and S358.000 of the amount 
appropriated for fiscal year 1977, for contributions to the Organiza- 
tion of American States, shall be used only for budgetary support for 
the Inter- American Commission on Human Rights. 

(b)(1) "1 There is authorized to be appropriated to the President 
for loans for Indus Basin Development to carry out the purposes of 
this section, in addition to funds available under this or any other Act 
for such purposes, for use beginning in the fiscal year 1969,. 
$61,220,000.-2 Such amounts are authorized to remain available until 
expended. 

(2) There is authorized to be appropriated to the President for 
grants for Indus Basin Development, in addition to any other funds 

For other reports required to be submitted to Cons^ress, see Reports to Consress Index. 
Subsection (f) was added by Sec. 313(c) of Public Law 94-161 (89 Stat. 849)! 
2i« 22 use § 2222. Sec. 107(d) of the FAAct of 1966 amended Sec. 302, which formerly 
read as follows : 

"Sec. 302. Authorization. — There is hereby authorized to be appropriated to the Presi- 
dent for use. in addition to funds available under any other Act for such purposes, for the 
fiscal year 1966 to carry out the purposes of this chapter not to exceed .$144,755,000 None 
of the funds available to carry out this chapter shall be contributed to anv international 
organization or to any foreiffu government or agency thereof to pav the costs of develop- 
ing or operating any volunteer program of such organization, government, or agency relat- 
ing to the selection, training, and programing of volunteer manpower. 
94-^161^(S9^?tat 849^" added by Sec. 313(a)(1)(B) of Public Law 

r.^Tr3.^.p- 9^2) of the FAAct of 1974 substituted the words "for the fiscal vear 1975, $165.- 
000.000" in lieu of "for the fiscal year 1975. $150,000,000". FA Appronriation Act 1975- 
'$120,000,000, of which not more than $17,000,000 shall be available for the United 
Nations Children's Fund : Provided, That none of the funds appropriated or made avail- 
able pursuant to this Act shall be used to supplement the funds provided to the United 
Nations Development Program in fiscal year 1974". 

agjhe words to this point commencing with ". and the fiscal year 1976, ♦ ♦ * " were 
by Sec. 313(a) (1) (A) of Public Law 94-161 (89 Stat. 849). 

^Paragraph (2) was added by Sec. 313(a) (1) (C) of Public Law 94-161 (89 Stat. 849). 
FAA.ct"of^l969 "^l^" subsection (2) were added by Sec. 108(c) of the 

Ueu^o^f^ "351 2^9^000"°^ ^"^^^^ 94-161 (89 Stat. 849) substituted "$61,220,000" in 



65-998 — 76 6 



64 



available for such purposes^ for use in the fiscal year 1974, $14,500,- 

000.223 and for use in the fiscal year 1975. $14,500,000,223 ^nd for use 
beginning in the fiscal year 1976, $27,000,000,2^* which amounts shall 
remain available until expended. The President shall not exercise 
any special authority granted to him mider section 610(a) or 614(a) 
of this Act to transfer any amount appropriated under this paragraph 
to, and to consolidate such amount with, any funds made available 
under any other provisions of this Act.^^s 

(c) None of the funds available to carry out this chapter shall be 
contributed to any international organization or to any foreign govern- 
ment or agency thereof to pay the costs of developing or operating any 
volunteer program of such organization, government, or agency relat- 
ing to the selection, training, and progranmiing of volunteer 
manpower. 

(d) 226 Of the funds made available to currj out this chapter for 
each of the fiscal years 1976 and 1977, $20,000,000 shall be available 
in each such fiscal year only for contributions to the United Nations 
Children's Fund.228 

(e) 22s There is authorized to be appropriated $2,000,000 for the 
fiscal year 1974 and $2,000,000 for the fiscal year 1975,23° to provide 
added contribution to the United Nations Relief and Works Agency 
for expansion of technical and vocational training of Arab refugees. 

(f) 23i There is authorized to be appropriated to the President, in 
addition to other amounts available for such purposes, $1,000,000 for 
the fiscal year 1972 and $1,000,000 for the fiscal year 1973, in Egyptian 
pounds owned by the United States and determined by the President 
to be excess to the requirements of departments and agencies of the 
United States, for the purpose of providing technical and vocational 



Sec. 9(3) of the FAAct of 1973 substituted "for use In the fiscal year 1974. $14,500,- 
000 and for use in the fiscal year 1975, $14,500,000," in lieu of "for use in the fiscal year 
1972. $15,000,000. and for use In the fiscal year 1973, $15.00,000". 

FA Appropriation Act, 1975 : "$9.00.000 : Provided, That no other funds appropriated or 
made available under this Act shall be used for the purposes of such section during the 
■current fiscal year". 

2^ The words to this point commencing with "and for use beginning * * *" were added 
by Sec. 313(a) (3) of Public Law 94-161 (89 Stat. 849). 

22STh6 last sentence was added by Sec. 107(b)(2) of the FAAct of 1971. 

22« Subsection (d). which was added by Sec. 108(b) of the FAAct of 1968, was amended 
by Sec. 9(4) of the FAAct of 1973. It formerly read as follows : 

"(d) There is authorized to be appropriated to the President, for the fiscal year 1969, 
$1,000,000 for contributions to the United Nations Children's Fund during the calendar 
year 1969. Funds made available under this subsection shall be in addition to funds avail- 
able under this or any other Act for such contributions and shall not be taken into account 
In computing the aggregate amount of United States contributions to such fund for the 
calendar year 1969." 

See. 313(a)(4) of Public Law 94-161 (89 Stat. 849) substituted "1976 and 1977, 
$20,000,000" in lieu of "1974 and 1975. $18,000,000". 

In opinion B-180517, dated March 21. 1974. the Comptroller General ruled that the 
$15,000,000 earmarked in the FA Appropriation Act, 1974 (Public Law 93-240) is 
controlling. 

FA Appropriation Act, 1975 : "For necessary expenses to carry out the provisions of 
section 301. $125,000,000, of which not more than $17,000,000 shall be available for the 
United Nations Childi'en's Fund : Provided, That none of the funds appropriated or made 
available pursuant to this Act shall be used to supplement the funds provided to the 
United Nations Development Program in fiscal year 1974". 

22» Subsection (e) was added by Sec. 108(d) of the FAAct of 1969. 

2^ Sec. 9(5) of the FAAct of 1973 substituted "$2,000,000 for the fiscal year 1974 and 
$2,000,000 for the fiscal year 1975" In lieu of "$1,000,000 for the fiscal 1972 and 
$1,000,000 for the fiscal year 19T3". 

FA Appropriation Act, 1974; $2,000,000. FA Appropriation Act 1975 included no appro- 
priation under this authorization. 

231 Subsection (f ) was added by Sec. 107(d) of the FAAct of 1971. 



65 



training and other assistance to Arab refugees. Anioimts appropriated 
under this subsection are authorized to remain available until 
expended. 

(g) 23-' Of the funds made available to carry out this chapter for fiscal 
year 1975, in addition to any other such funds to be made available 
ioT contributions to the International Atomic Energy Agency, not less 
than $500,000 shall be made available to such Agency as technical 
assistance in kind. However, a reasonable amount of funds authorized 
under this section shall be made available in fiscal year 1975 to 
strengthen international procedures which are designed to prevent the 
unauthorized dissemination or use of nuclear materials. The President 
shall report to the Congress not later than July 1, 1975, concerning 
actions taken by the United States to strengthen the procedures de- 
scribed under the preceding sentence. 

(h) ^^- Congress directs that no funds should be obligated or ex- 
pended, directly or indirectly, to support the United Nations Educa- 
tional, Scientific, and Cultural Organization until the President certi- 
fies to the Congress that such Organization (1) has adopted policies 
which are fully consistent with its educational, scientific, and cultural 
objectives, and (2) has taken concrete steps to correct its recent actions 
of a primarily political character. 

Sec. 303.-^^ Indus Basin Development. — In the event that funds 
made available under this Act (other than part II) are used by or 
under the supervision of the International Bank for Reconstruction 
and Development in furtherance of the development of the Indus 
Basin through the program of cooperation among South Asian and 
other countries of the free world, which is designed to promote eco- 
nomic growth and political stability in South Asia, such funds may 
be used in accordance with requirements, standards, or procedures 
established by the Bank concerning completion of plans and cost esti- 
mates and determination of feasibility, rather than with requirements, 
standards, or procedures concerning such matters set forth in this or 
other Acts; and such funds may also be used without i*egard to the 
provisions of section 901(b) of the Merchant Marine Act, 1936, as 
amended (46 U.S.C. 124=1),^^^ whenever the President determines that 
such provisions cannot be fully satisfied without seriously impeding 
or preventing accomplislmient of the purposes of such programs : Pro- 
vided^ That compensating allowances are made in the administration 
of other programs to the same or other areas to which the require- 
ments of said section 901(b) are applicable. 

Sec. 304.-^^ United Nations Peacekeeping. — It is the sense of the 
Congress that the cause of international order and peace can be en- 
hanced by the establishment, within the United Nations Organization, 
of improved arrangements for standby forces being maintained by 
United Nations members for United Nations peacekeeping purposes 
in accordance with the United Nations Charter. The President is 
therefore requested to explore through the United States Representa- 



^ Subsections (g) and (h) were added by Sec. 9(a) (2) of the FAAct of 1974, 

22 use 2223. 

For text, see page 222. 
23=22 use 2224. Sec. 304 was added by Sec. 110(c) of the FAAct of 1967. 



66 



tive to thp United Nations, and in cooperation with the other members 
of the United Nations and the United Nations Secretariat, both the 
means and the prospects of establishing such peacekeeping arrange- 
ments. The President shall submit to the Congress,^ not later than 
March 31, 1968, a report upon the outcome of his initiatives, together 
with such recommendations as he may deem appropriate.^^^ 

Sec. 305."^^ Integration of Women. — The President is requested to 
instruct each representative of the United States to each international 
organization of which the United States is a member (including but 
not limited to the International Bank for Eeconstruction and Develop- 
ment, the Asian Development Bank, the Inter- American Develop- 
ment Bank, the International Monetary Fund, the United Nations, 
and the Organization for Economic Cooperation and Development) 
to carry out their duties with respect to such organizations in such a 
manner as to encourage and promote the integration of women into the 
national economies of member and recipient countries and into pro- 
fessional and policy-making positions within such organizations, 
thereby improving the status of women. 

Chapter 4 — Supporting Assistance [Repealed — 1972] 

[See Chapter 4 of Part II, page 82.] 

Chapter 5— Disaster Relief 

Sec. 451.2^° Contingency Fund. — (a) There is authorized to be 
appropriated to the President for the fiscal year 1975 not to exceed 
$5,000,000,^*° to provide assistance authorized by this part or by sec- 
tion 639 for any emergency purpose only in accordance with the pro- 
visions applicable to the furnishing of such assistance. 

(b) The President shall submit quarterly reports to the Committee 
on Foreign Relations and the Committee on Appropriations of the 
Senate and the Speaker of the House of Representatives on the pro- 
graming and obligation of funds under this section.^^^ 

(c) No part of this fund shall be used to pay for any gifts to any 
officials of any foreign government made heretofore or hereafter.^*- 



=^For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

22 use 2225. Sec. 805 was added by See. 54 of the FAAct of 1974, which inserted 
It at the end of Part IIT, chapter 3. Sec. 313(b) of Public Law 94-161 reinserted it at 
the end of Part I, chapter 3. 

202(b) of the FAAct of 1971 repealed Chapter 4 of part I. 

Sec. 2(1) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333, 
approved July 8, 1974) substituted the words "Disaster Relief" in lieu of "Contingency 
Fund" in the chapter heading. 

2^22 use 2261. Sec. 451 was amended bv Sec. 28(c) of the FAAct of 1974. It formerly 
read as follows : "SEC. 451. CONTINGENCY FUND — (a) There is authorized to be appro- 
priated to the President for each of the fiscal years 1974 and 1975 not to exceed $30,000,000, 
to provide assistance authorized by this part primarily for disaster relief pui'poses. in 
accordance with the provisions applicable to the furnishing of such assistance, (b) The 
President shall provide quarterly reports to the Committee on Foreien Relations and the 
Committee on Appropriations of the Senate and the Speaker of the House of Representa- 
tives on the programing and the obligation of funds under subsection (a)." 

FA Appropriation Act, 1975 : .$1,800,000. 

For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

242 Sec. 452, which was added by Sec. 2(2) of the Foreign Disaster Assistance Act of 1974 
(Public Law 93-333) and formerly appeared at this point, was redesignated as Sec. 494 by 
Sec. 101(4) of Public Law 94-161 (89 Stat. 849). 



67 



Chapter 6— Assistance to Countries Having Agrarian Economies 

Sec. 461. Assistance to Countries Having Agrarian Economies.— 

(a) 2« Wherever the President determines that the economy of any 
country is in major part an agrarian economy, emphasis shall be placed 
on programs which reach the people in such country who are engaged 
in agrarian pursuits or who live in the villages or rural areas in such 
comitry, including programs which will assist them in the establish- 
ment of indigenous cottage industries, in the improvement of agri- 
cultural methods and tecliniques, and which will encourage the devel- 
opment of local programs of self-help and mutual cooperation. In such 
country emphasis shall be placed also upon programs of community 
development which will promote stable and responsible governmental 
institutions at the local level.^^* 

(b) In presenting proposals to the Congress for fiscal year 1969 
the President shall include recommendations for improving and es- 
tablishing agricultural research and training facilities in tropical and 
subtropical regions of Latin America, Africa, and Asia. These recom- 
mendations shall be developed after consultation with the Department 
of Agriculture, land-grant colleges of agriculture, and other appro- 
priate institutions and organizations, including those in the regions 
concerned. 

Chapter 7 — Joint Commissions on Rural Development 

Sec. 471.2^^ Joint Commissions on Rural Development. — (a) The 

President is authorized to conclude agreements with less developed 
countries providing for the establishment in such countries of Jomt 
Commissions on Rural Development each of which shall be composed 
of one or more citizens of the United States appointed by the Presi- 
dent and one or more citizens of the country in which the Commission 
is established. A majority of the members of each such Commission 
shall be citizens of the country in which it is established. Each such 
agreement shall provide for the selection of the members who are 
citizens of the country in which the Commission is established who 
wherever feasible shall be selected in such manner and for such terms 
of office as will insure to the maximum extent possible their tenure and 
continuity in office. 

(b) A commission established pursuant to an agreement authorized 
by this section shall be authorized to formulate and carry out programs 
for development of rural areas in the country in which it is established, 
which may include such research, training and other activities as may 
be necessary or appropriate for such development. 

(c) Not to exceed 10 per centum of the funds made available pur- 
suant to section 212 shall be available to the President in negotiating 
and carrying out agreements entered into under this section, including 
the financing of ap]jropriate activities of Commissions established pur- 
suant to such agreements. 



2^3 22 use 2271. 

^2*4 This last sentence was added by Sec. 110 of the FAAct of 1962. 

Subsection designation "(a)" and subsection (b) were added by Sec 113 of the FAAct 
of 1967. 

2« Chapter 7 was added by Sec. 110 of the FAAct of 1966. 
22 use § 2281. 



68 



(d) The furnishing of assistance under this section shall not be 
construed as an express or implied assumption by the United States 
of any responsibility for making further contributions for such 
purpose. 

(e) Nothing in this chapter shall be construed to restrict the au- 
thority contained in any other chapters of this Act. 

Chapter 8 — International Narcotics Control -^^ 

Sec. 481.2^^ International Narcotics Control. — (a) It is the sense 
of the Congress that effective international cooperation is neces- 
sary to put an end to the illicit production, smuggling, trafficking in^ 
and abuse of dangerous drugs. In order to promote such cooperation, 
the President is authorized to conclude agreements with other coun- 
tries to facilitate control of the production, processing, transportation, 
and distribution of narcotic analgesics, including opium and its deriv- 
atives, other narcotic drugs and psychotropics, and other controlled 
substances as defined in the Comprehensive Drug Abuse Prevention 
and Control Act of 1970. Notwithstanding any otlier provision of law,, 
the President is authorized to furnish assistance to any country or in- 
ternational organization, on such terms and conditions as he may 
determine, for the control of the production of, processing of, smug- 
gling of, and traffic in, narcotic and psychotropic drugs. The President 
shall suspend economic and military assistance furnished under this or 
any other Act, and shall suspend sales under the Foreign Military 
Sales Act "^'^ and under title I of the Agricultural Trade Development 
and Assistance Act of 1954,^^^ with respect to any country when the 
President determines that the government of such country has failed to 
take adequate steps to prevent narcotic drugs and other controlled 
substances (as defined by the Comprehensive Drug Abuse Prevention 



2*8 Chapter 8 was added by Sec. 109 of the FAAct of 1971. 

2-18 22 use § 2291. Sec. 481 was added by Sec. 109 of the FAAct of 1971. Sec. oOS of the- 
Foreign Relations Authorization Act of 1972 amended Sec. 481 and added Sec. 482. Sec. 481 
formerly read as follows : 

"It Is the sense of the Conjrress that effective international cooperation is necessary tO' 
put an end to the illicit production, trafficking in, and abuse of dangerous drugs. In order 
to promote such cooperation, the President is authorized to conclude agreements with other 
countries to facilitate control of the production, processing, transportation, and distribu- 
tion of narcotic analgesics, including opium and its derivatives, other narcotic drugs and 
psychotropics and other controlled substances as defined in the Comprehensive Drug Abuse 
Prevention and Control Act of 1970 (Public Law 91-513). Notwithstanding any other 
provision of law, the President is authorized to furnish assistance to any country or inter- 
national organization, on such terms and conditions as he may determine, for the control of 
the production of, processing of, and traffic in, narcotic and psychotropic drugs. In furnish- 
ing such assistance the President may use any of the funds made available to carry out 
the provisions of this Act. The President shall suspend economic and military assistance 
furnished under this or any other Act, and shall suspend sales under the Foreign Military 
Sales Act and under title I of the Agriculture Trade Development and Assistance Act 
of 19.54 with respect to any country when the President determines that the government 
of such country has failed to take adequate steps to prevent narcotic drugs and other con- 
trolled substances (as defined by the Comprehensive Drug Abuse Prevention and Control 
Act of 1970) pi-oduced or processed, in whole or in part, in such country, or transported 
through such country, from being sold illegally within the jurisdiction of such country to- 
United states Government personnel or their dependents, or from entering the United 
States unlawfully. Such suspension shall continue until the President determines that the 
government of such country has taken adequate steps to carry out the purposes of this 
chapter." 

Under the FAAct of 1971. funds to implement Sec. 481 were available from any funds 
made available to carry out this Act. 

2«> Subsection designation "(a)" and subsection (b) were added by sec. 11(a) of the 
FAAct of 1973. 

For text, see page 253. 

2£^2 For text, see page 2S4. 



69 



and Control Act of 1970) -^^ produced or processed, in whole or in 
part, in such country, or transported through such country, from being 
sold illegally within the jurisdiction of such country to tjnited States 
Government personnel or their dependents, or from entering the 
"United States unlawfully. Such suspension shall continue until the 
President determines that the government of such country has taken 
adequate steps to carry out the purposes of this chapter. 

(b)-^^(l) Not later than forty-five days after the date on which each 
calendar quarter of each year ends, the iPresident shall transmit to the 
Speaker of the House of Representatives, and to the Commxittee on 
Foreign Relations of the Senate, a report on the programming and 
obligation, on a calendar quarter basis, of funds imder this chapter 
prior to such date.-^^ 

(2) Not later than forty-five days after the date on which the second 
calendar quarter of each year ends and not later than forty-five days 
after the date on which the fourth calendar quarter of each year ends, 
the President shall transmit to the Speaker of the House of Repre- 
sentatives, and to the Committee on Foreign Relations of the Senate, a 
complete and detailed semiannual report on the activities and opera- 
tions carried out under this chapter prior to such date.^^* Such semi- 
annual report shall include, but shall not be limited to — 

(A) the status of each agreement concluded prior to such date 
with other countries to carry out the purposes of this chapter; 
and 

(B) the aggregate of obligations and expenditures made, and 
the types and quantity of equipment provided, on calendar quar- 
ter basis, prior to such date — 

(i) to carry out the purposes of this chapter with respect 
to each country and each international organization receiv- 
ing assistance under this chapter including the cost of United 
States personnel engaged in carrying out such purposes in 
each such coimtry and with each such international 

' organization ; 

(ii) to carry out each program conducted under this chap- 
ter in each country and by each international organization, 
including the cost of United States personnel engaged in 
carrying out each such program ; and 

(iii) for administrative support services within the United 
States to carry out the purposes of this chapter, including 

• cost of United States personnel engaged in carrying out such 

purposes in the United States. 
Sec. 482.2^^ Authorization. — To carry out the purposes of section 
481, there are authorized to be appropriated to the President $42,500,- 
000 for each of the fiscal years 1974 and 1975. Amounts appropriated 
under this section are authorized to remain available until expended.^^^ 

=53 84 Stat. 1236. 

*"For other reports required to be submitted to Congress, see Reports to Congress. Ind^T. 
» 22 use 2291a. Sec. 482 \ras added by Sec. 503 of tbe Foreign Relations Authoriza- 
tion Act of 1972. 

»»Sec. 11 fb) of the FAAct of 1973 struck out the words "$42,500,000 for the fiscal 
year 1973, which amount is authorized to remain available until expended," and inserted- 
in lien thereof "$42,500,000 for each of the fiscal years 1974 and 1975. Amounts appro- 
priated under this section are authorized to remain available until expended." 

FA Appropriaton Act, 1975 : $17,500,000. 



70 



Chapter O—International Disaster Assistance "7 

Sec. 491.258 259 Policy and General Authority. — (a) The Congress, 
recognizing that prompt United States assistance to alleviate human 
suffering caused by natural and manmade disasters is an important 
expression of the humanitarian concern and tradition of the people of 
the United States, affirms the willingness of the United States to pro- 
vide assistance for the relief and rehabilitation of people and countries 
affected by such disasters. 

(b) Subject to the limitation on appropriations in section 492, and 
notwithstanding any other provision of this or any other Act, the 
President is authorized to furnish assistance to any foreign country 
or international organization on such terms and conditions as he may 
•determine, for international disaster relief and rehabilitation, includ- 
ing assistance relating to disaster preparedness, and to the prediction 
of, and contingency planning for, natural disasters abroad. 

(c) In carrying out the provisions of this section the President shall 
insure that the assistance provided by the United States shall, to the 
greatest extent possible, reach those most in need of relief and rehabili- 
tation as a result of natural and manmade disasters. 

Sec. 492.2^^ Authorization. — There is authorized to be appropriated 
to the President to carry out section 491, $25,000,000 for each of the 
fiscal years 1976 and 1977. Amounts appropriated under this section 
are authorized to remain available until expended. The President shall 
submit quarterly reports to the Committee on Foreign Relations of 
the Senate and to the Speaker of the House of Representatives on the 
proo^raming and obligation of funds under this section. 

Sec. 493.2^^ Disaster Assistance — Coordination. — The President is 
authorized to appoint a Special Coordinator for International Dis- 
aster Assistance whose responsibility shall be to promote maximum 
effectiveness and coordination in responses to foreign disasters by 
United States agencies and between the United States and other 
donors. Included among the Special Coordinator's responsibilities 
shall be the formulation and updating of contingency plans for pro- 
viding disaster relief. 

Sec. 494.2^2 Disaster Relief Assistance. — There are authorized to 
be appropriated, in addition to other sums available for such purposes, 
$65,000,000 for use by the President for disaster relief and emer- 
gency recovery needs in Pakistan, and Nicaragua, under such terms 
and conditions as he may determine, such sums to remain available 
until expended. 



Sec. 101(1) of Public Law 94-161 (89 Stat. snbstitutpd chapter heading "Inter- 

national Disaster Assistance" in lieu of "Refuge Relief Assistance". 

Former Sec. 491, which was added by Sec. 109 of the FAAct of 1971, was repealed 
by Sp''. 10U2) of Public Law 94-1Gl( S9 Stnt". 849). It formerly read as follows: "Sec. 
491. Refujree Relief Assistance. — There is authorized to be appropriated to the President 
for the fiscal year 1972. in addition to funds otherwise available for such purposes, not to 
exceed .$250,060,000. to remain available until expended, for use by the President in provid- 
in? assistance for the relief and rehabilitation of refuprees from East Pakistan and for 
humanitarian relief in East Pakistan. Such assistance shall be distributed, to the maximum 
extent practicable, under the auspices of and by International Institutions and relief 
a?pncips or United St^ites voluntary ajrencies." 

22 rsC 2292. Sec. 491 was added by Sec. 101 (.3) of Public Law 94-161 (89 Stat. 849). 

^ 22 TTSC 2292a. Sec. 492 was added by Sec. 101 (.S) of Pubic Law 94-161 (89 Stat. 849). 

2^22 use 2292b. Sec. 493 was added by Sec. 101(3) of Public Law 94-161 (89 Stat. 
849). 

2«3 22 use 2292c. Former Sec. 4.')2, which was added by Sec. 2(2) of the Forelgni Disaster 
Assistance Act of 1974 (Public Law 93-333), was redesignated as Sec. 494 by Sec. 101(4) 
of Public Law 94-161 (89 Stat. 849). 



71 



Sec. 494A.2«^ Famine and Disaster Relief to Drought-Stricken 
African Nations.^^* — (a) The Congress affirms the response of the 
United States Government in providing famine and disaster relief and 
related assistance in connection with the drought in the nations of 
Africa. The President shall report to Congress as soon as possible on 
solutions to this problem of famine and further propose how any of 
these solutions may be carried out by multilateral organizations.^^^ 

(b) Notwithstanding any prohibitions or restrictions contained in 
this or any other Act, there is authorized to be appropriated to the 
President, in addition to funds otherwise available for such purposes, 
$110,000,000 to remain available until expended, for use by the 
President, imder such terms and conditions as he may determine, for 
emergency and recovery needs, including drought, famine, and disaster 
relief, and rehabilitation and related assistance, for the drought- 
stricken nations of Africa. Of the amount authorized to be appro- 
priated under this subsection, not more than $10,000,000 shall be 
available for Ethiopia.^Q^ 

Sec. 494B.-'^ (a)'"^ African Development Program. — The 
Congress reaffirms its support of ^'^ the initiative of the United States 
Government in undertaking consultations and planning with the coun- 
tries concerned, with other nations providing assistance, with the 
United Nations, and with other concerned international and regional 
organizations, toward the development and support of a comprehen- 
sive long-term African Sahel development program. 

(b) -^^ The President is authorized to develop a long-term compre- 
hensive development program for the Sahel and other drought- 
stricken nations in Africa. 

(c) ^"* In developing this long-term program, the President shall — 

(1) consider international coordination for the planning and 
implementation of such program; 

(2) seek greater participation and support by African coun- 
tries and organizations in determining development priorities; 
and 

(3) begin such planning immediately. 

(d) -^^ There is authorized to be appropriated to the President, to 



«o22 use 2292d. Former Sec. 639A. vrhich was added bv Sec. 20 of the FAAct of 1973, 
wa5? redesismated as Sec. 494A by Sec. 101(5) of Public Law 94-161 (89 Stat. S49). 

^ See. 3(1) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333, 8S Stat. 
290, approved July 8, 1974) substituted the words "Drought-stricken African Xations ' in 
lieu of "the African Sahel" in the section caption. 

2«5 Sec. 3(2) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) struck 
the word "Sahelian" which appeared at this point. 

^ For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

»^Sec. 3(3) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) 
BUbstitnted "Sll 0.000.000" in lipu of <?2.t.OO0.00O". 

268 f5^c. 3(4) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) struck 
the word "Sahelian" whicli appeared at this point. 

^ Sec. 3(5) of the Foreign Disaster Assistance Act of 1974 (Public Law 93-333) added 
this sentence. 

2™ 22 use 2292e. Former Sec. 639B, which was added by See. 20 of the FAAct of 1973, 
"Was redesignated as Sec. 494B by Sec. 101(5) of Public Law 94-161 (89 Stat. 849). 
, 271 Sec. 101(7) (B) of Public Law 94-161 (89 Stat. 849) added paragraph designation 
"(a)". 

,=^Sec. 101(7) (A) of Public Law 94-161 (89 Stat. 849) struck the word "Saher' 
"Which appeared at this point. 

Sec. 101(7) (C) of Public Law 94-161 (89 Stat. 849) substituted the words "reaffirma 
its support of" in lieu of "supports". 

Sec. 101(7) (D) of Public Law 94-161 (89 Stat. 849) added subsections (b), (c), 
and (d). 



72 



carry out the purposes of this section, in addition to funds otherwise 
available for such purposes, $5,000,000 for the fiscal year 1976, which 
amount is authorized to remain available until expended. The Presi- 
dent shall submit to the Foreign Kelations and Appropriations Com- 
mittees of the Senate and the International Relations and Appro- 
priations Committees of the House of Eepresentatives not later than 
April 30, 1976, a comprehensive proposal for carrying out the provi- 
sions of this section which shall include budget materials relating to 
programs for the fiscal year 1977. 

Sec. 495.=^^^ Cyprus Relief and Rehabilitation. — The President is 
authorized to furnish assistance, on such terms and conditions as he 
may determine, for the relief and rehabilitation of refugees and other 
needy people in Cyprus. There is authorized to be appropriated for 
the purposes of this section, in addition to amoimts otherwise avail- 
able for such purposes, $30,000,000. Such amount is authorized to 
remain available until expended. Assistance under this section shall be 
provided in accordance with the policy and general authority con- 
tained in section 491. 

Chapter 10 — Assistance to Portugal and Portuguese Colonies in 
Africa Gaining Independence 

Sec. 496.-^^ (a) ^-^ Assistance to Portugal and Portuguese Colo- 
nies in Africa Gaining Independence. — There are authorized to be 
appropriated to the President for the fiscal year 1975, in addition to 
funds otherwise available for such purposes, not to exceed — 

( 1 ) $7,750,000 to make grants ; and 

(2) $17,250,000 to make loans; ^^'^ 

to. remain available until expended, for use by the President in provid- 
ing economic assistance, on such terms and conditions as he may deter- 
mine, for Portugal and the countries and colonies in Africa which 
were, prior to April 25, 1974, colonies of Portugal. 

(b) ^^^ Notwithstanding the provisions of section 620 (r) of this Act, 
the United States is authorized to forgive the liability incurred by the 
Government of the Cape Verde Islands for the repayment of a 
$3,000,000 loan on June 30, 1975. 

(c) 28i The President is authorized to use up to $30,000,000 of the 
funds made available under this part for the fiscal year 1976, in 
addition to funds otherwise available for such purposes, to provide 
development assistance in accordance with chapter 1 or relief and 
rehabilitation assistance in accordance with chapter 9 (including 
assistance through international or private voluntary organizations) 
to countries and colonies in Africa w^hich were, prior to April 25, 1974, 
colonies of Portugal. 



2-15 22 use 2292f. Sec. 495 was added by Sec. 101(8) of Public Law 94-161 (89 Stat. 849). 

Chapter 10 added by Sec. 53 of the FAAct of 1 974. 

22 use 229.?. Sec. 496 was added by Sec. 53 of the PAAct of 1974. 
FA Appropriation Act, 1975 : ".$25,000,000. Provided, That of the finds appropriated 
under this paragraph not less than $5,000,000 shall be allocated for the eape Verde 
Islands and not less than $5,000,000 shall be allocated for Mozambique, Guinea-Bissau, 
and Angola". 

Sec. 314(1) of Public Law 94-161 (89 Stat 849) added paragraph designation **(a)". 
Sec. 314(2) of Public Law 04-161 .(89 Stat. 849) substituted "$7,750,000" in lieu of 
"$5,000,000". 

2^ Sec. 314 (3) of Public Law 94-161 (89 Stat. 849) substituted "$17,250,000" in lieu 
of "$20,000,000". 

2^ Sec. 314(4) of Public Law 94-161 (89 Stat. 849) added subsections (b) and (c). 



73 



PART II 
Chapter 1— Policy 

Sec. 501.=^^ Statement of Policy. — The Congress of the United 
States reaffiiTns the policy of the United States to achieve international 
peace and security through the United Nations so that armed force 
shall not be used except for individual or collective self-defense. The 
Congress hereby finds that the efforts of the United States and other 
friendly countries to promote peace and security continue to require 
measures of support based upon the principle of effective self-help and 
mutual aid. It is the purpose of this part to authorize measures in the 
■conmion defense against internal and external aggression, including 
the furnishing of military assistance, upon request, to friendly coun- 
tries and international organizations. In furnishing such military 
assistance, it remains the policy of the United States to continue to 
exert maximum efforts to achieve universal control of weapons of mass 
destruction and universal regulation and reduction of annaments, in- 
cluding armed forces, under adequate safeguards to protect complying 
countries against violation and evasion. 

The Congress recognizes that the peace of the world and the security 
of the United States are endangered so long as international com- 
munism and the countries it controls continue by threat of military 
action, by the use of economic pressure, and by internal subversion, 
or other means to attempt to bring under their domination peoples 
now free and independent and continue to deny the rights of freedom 
and self-government to peoples and comitries once free but now sub- 
ject to such domination. 

It is the sense of the Congress that an important contribution toward 
j>eace would be made by the establishment under the Organization of 
American States of an international military force. 

In enacting this legislation, it is therefore the intention of the Con- 
gress to promote the peace of the world and the foreign policy, se- 
curity, and general welfare of the United States by fostering an 
improved climate of political independence and individual liberty, 
improving the ability of friendly countries and international organiza- 
tions to deter or, if necessary, defeat Communist or Communist-sup- 
ported aggression, facilitating arrangements for individual and 
collective security, assisting friendly countries to maintain internal 
security, and creating an environment of security and stability in the 
developing friendly countries essential to their more rapid social, eco- 
nomic, and political progress. The Congress urges that all other coun- 
tries able to contribute join in a common undertaking to meet the goals 
stated in this part. 

It is the sense of the Congress that in the administration of this 
part priority shall be given to the needs of those countries in danger 
of becoming victims of active Communist or Communist-supported 
aggression or those countries in which the internal security is threat- 
ened by Communist-inspired or Communist-supported internal 
subversion.-** 



Sec. 201 fa) of the FAAct of 1963 struck out the words "Short Titli and" In the 
chapter heartinjr. which formerlv read "Short Title ant> Poltct". 

2SS22 use § 2301. Former Sec. 502 was desiemated Sec. 501 by Sec. 201(a)(1) of the 
FAAct of 1967. Former See. 501, which related to the short title, was repealed by Sec. 
201 (h) of the FAAct of 1963. 

^ This paragraph was added by Sec 201(a) (2) of the FAAct of 1967. 



74 



Finally, the Congress reaffirms its full support of the progress of the 
members of the North Atlantic Treaty Organization toward in- 
creased cooperation in political, military, and economic affairs. In 
particular, the Congress welcomes the steps which have been taken to 
promote multilateral programs of coordinated procurement, research, 
development, and production of defense articles and urges that such 
programs be expanded to the fullest extent possible to further the 
defense of the North Atlantic area. 

Sec. 502.285 Utilization of Defense Articles and Services. — 
Defense articles and defense services to any country shall be fur- 
nished solely for internal security, for legitimate self-defense, to 
permit the recipient country to participate in regional or collective 
arrangements or measures consistent with the Charter of the United 
Nations, or otherwise to permit the recipient country to participate 
in collective measures requested by the United Nations for the purpose 
of maintaining or restoring international peace and security,^^' or 
for the purpose of assisting foreign military forces in less developed 
friendly countries (or the voluntary efforts of personnel of the Armed 
Forces of the United States in such countries) to construct public 
works and to engage in other activities helpful to the economic and 
social development of such friendly countries. It is the sense of the 
Congress that such foreign military forces should not be maintained or 
established solely for civic action activities and that such civic action 
activities not significantly detract from the capability of the military 
forces to perform their military missions and be coordinated with and 
form part of the total economic and social development effort. 

Sec. 502A.288 Excess Defense Articles. — Excess defense articles 
shall be provided whenever possible rather than providing such arti- 
cles by the procurement of new items. 

Sec. 502B.289 Human Rights.— It is the sense of Congress that, 
except in extraordinary circum^stances, the President shall substan- 
tially reduce or terminate security assistance to any government which 
engages in a consistent pattern of gross violations of internationally 
recognized human rights, including torture or cruel, inhuman or de- 
grading treatment or punishment: prolonged detention without 
charges ; or other flagrant denials of the right to life, liberty, and the 
security of the person. 

(b) Whenever proposing or furnishing security assistance to any 
government falling within the provisions of paragraph (a) , the Presi- 
dent shall advise the Congress of the extraordinary circumstances 
necessitating the assistance. 

(c) In determining whether or not a government falls within the 
provisions of subsection (a) , consideration shall be given to the extent 
of cooperation by such government in permitting an unimpeded in- 
vestigation of alleged violations of intemationally recognized human 



22 use § 2302. Former subsection (a) of Sec. 505 was redesignated Sec. 502 by Sec. 
201 (d) (1) of the FAAct of 1967. 

2s«The words to this point were substituted for "Utilization op Assistance. — (a) 
Military assistance" by Sec. 201(d) (2) of the FAAct of 1967. 

2^ Sec. 201(c) (1) of the FAAct of 1965 struck out a colon and added the remainder of 
this section from this point. 

2«8 22 use 2.10?,. Sec. 502A was added bT. Sec. 12(a) of the FAAct of 1973. 

2«> 22 use 2.^04. Sec. 502B was added by Sec. 46 of the FAAct of 1974. 

^ For other reports required to be submitted to Congress, see Reports to Congress, Index. 



75 



rights by appropriate international organizations, including the Inter- 
national Committee of the Red Cross and anybody acting under the 
authority of the United Nations or of the Organization of American 
States. 

(d) For purposes of this section, 'security assistance' means assist- 
ance under chapter 2 (military assistance) or chapter 4 (security sup- 
porting assistance) of this part, assistance under part V (Indochina 
Postwar Reconstruction) or part VI (Middle East Peace) of this 
Act. sales imder the Foreign Military Sales Act, or assistance for 
public safety under this or any other Act. 

Chapter 2 — Military Assistance 

Sec. 503.291 General Authority.— (a) The President is authorized 
to furnish military assistance, on such terms and conditions as he may 
determine, to any friendly country or international organization, the 
assisting of which the President finds will strengthen the security of 
the United States and promote world peace and which is otherwise 
eligible to receive such assistance, by — 

(1) acquiring from any source and providing (by loan or grant) 
any defense article or defense service ; or 

(2) assigning or detailing members of the Armed Forces of the 
United States and other personnel of the Department of Defense 
to perform duties of a non-combatant nature. 

(b) In addition to such other terms and conditions as the President 
may determine pursuant to subsection (a), defense articles may be 
loaned thereunder only if — 

( 1 ) there is a bona fide reason, other than the shortage of funds, 
for providing such articles on a loan basis rather than on a grant 
basis ; 

(2) there is a reasonable expectation that such articles will be 
returned to the agency making the loan at the end o.f the loan 
period unless the loan is then renewed ; 

(3) the loan period is of fixed duration not exceeding five years, 
during which such article may be recalled for any reason by the 
United States ; 

(4) the agency making the loan is reimbursed for the loan based 
on the amount charged to the appropriation for military assist- 
ance under subsection (c) ; and 

(5) arrangements are made with the agency making the loan 
to be reimbursed in the event such article is lost or destroyed 
while on loan, such reimbursement being made first out of any 



Sec. 12(b)(1) of tlie FAAct of 1973 amended Sec. 503, which formerly read as 

follow;-: : 

22 rSC 2311. 

"Sec. ">r»3. General Authority. — The President is authorized to furnish military assistance 
on such terms and conditions as he may determine, to any friendly country or international 
orpranization, the assistins: of which the President finds wiii stiengtlieji the security of tlie 
United States and promote world peace and which is otherwise eligible to receive such 
assistance by — 

"(a) acquirins: from any source and providing (by loan or grant) any defense article 
or defense service : 

"(h) making financial contributions to multilateral programs for the acquisition or 
construction of facilities for collective defense. 

■ "(c) providin,<: financial assistance for expenses incident to particiuation by the 
-Tnited States Government in regional or collective defense organizations: 

"(d) a.«!signing or detailing members of the Armed Forces of the United States and 
other personnel of the Department of Defense to perform duties of a noncombatant 
nature, including thos^ related to training or advice." 



76 



funds available to carry out this chapter and based on the de- 
preciated value of the article at the time of loss or destruction, 
(c) (1) In the case of any loan of a defense article or defense service 
made under this section, there shall be a charge to the appropriation 
for military assistance for any fiscal year while the article or service 
is on loan in an amount based on — 

(A) the out-of-pocket expenses authorized to be incurred in 
connection with such loan during such fiscal year ; and 

(B) the depreciation which occurs during such year while such 
article is on loan. 

(2) The provisions of this subsection shall not apply — 

(A) to any particular defense article or defense service which 
the United States Government agreed, prior to the date o,f enact- 
ment of this subsection, to lend ; and 

(B) to any defense article or defense service, or portion thereof^ 
acquired with funds appropriated for military assistance under 
this Act. 

Sec. 504.^^- Authorization. — (a) There is authorized to be appro- 
priated to the President to carry out the purposes of this part not to 
exceed $600,000,000 for the fiscal year 1975 ; 293 294 Provided, That 
funds made available for assistance imder this chapter (other than 
(1) training in the United States, or (2) for Western Hemisphere 
countries, training in the United States or in the Canal Zone) shall 
not be used to furnish assistance to more than thirty-one countries 
in any fiscal year : Provided further^ That none of the funds appro- 
priated pursuant to this subsection shall be used to furnish sophisti- 
cated weapons systems, such as missile systems and jet aircraft for 
military purposes, to any underdeveloped country, unless the President 
determines that the furnishing of such weapons systems is important 
to the national security of the United States and i-eports within thirty 
days each such determination to the Congress.^^^ '^"'^ Amounts appro- 
priated under this subsection are authorized to remain available until 
expended. Amounts appropriated under this subsection shall be 



See. 10(1) of the FAAct of 1974 substituted the words "$600,000,000 for the fiscal- 
year 1975" in lieu of "$512,500,000 for the fiscal year 1974." 

FA Appropriation Act, 1975 : $475,000,000, "including administrative expenses and 
purchase of passenger inotor vehicles for replacement only for use outside of the United 
states : Provided, That none of the funds contained in this paragraph shall be available 
for the purchase of new automotive vehicles outside of the United States : Provided further. 
That the total number of flag and general officers of the United States Armed Forces as- 
signed or detailed to military assistance advisory groups, military missions, or similar 
organizations, or performing duties primarily with respect to the Military Assistance Pro- 
gram and the Foreign Military Sales Program shall not exceed twenty after May 1, 1975". 

25^* With the exception of the change noted in footnote 246, Sec. 201(c) (3) of the FAAct 
of 1967 substituted the words to this point in lieu of "In addition to such amounts as may 
be otherwise authorized to support Vietnamese forces and other free world forces in Viet- 
nam, there is authorized to be appropriated to the President to carry out the purposes of 
his part (excluding the support of Vietnamese forces, and other free world forces in Viet- 
nam) not to exceed $875,000,000 for the fiscal year 1967". 

Sec. 10(2) of the FAAct of 1974 substituted the words beginning with "(other than 
(1) training * * *" ending with "* * * Canal Zone)" in lieu of "(other than training 
in the United States)". 

2t«Sec. 12(2) (B) of the FAAct of 1973 substituted "thirty-one countries" in lieu of 
"forty countries". 

2f^The second provision was added by Sec. ^0.1 (a) (3) of the FAAct of 1968. 

^The second and third sentences, which were added by Sec. 201(c)(2) of the FAAct 
of 1967. were struck out by Sec. 201(a)(2) of the FAAct of 1968. They read as follows: 
"Of the amount appropriated pursuant to this subsection for the fiscal year 1968, 
$24,100,000 shall be available solely for cost-sharing expenses of United States partici- 
pation in the international military headquarters and related agencies program. No part 
of any funds made available under any other provisions of law shall be used for the cost- 
sharing expenses referred to in the preceding sentence." 



77 



available for cost-sharing expenses of United States participation in 
the military headquarters and related agencies program.-^'-^ 

(b) In order to make sure that a dollar spent on militaiy assistance 
to foreign countries is as necessary as a dollar spent for the United 
States military establishment, the President shall establish procedures 
for programing and budgeting so that programs of military assistance 
come into direct competition for financial support with other activities 
and programs of the Department of Defense. 

Sec. 505.2^° Conditions of Eligibility. — (a) In addition to such 
other provisions as the President may require, no defense articles shall 
be furnished to any countrv on a grant basis unless it shall have agreed 
that— 

(1) it will not, without the consent of the President — 

(A) permit any use of such articles by anyone not an of- 
ficer, employee, or agent of that country, 

(B) transfer, or permit any officer, employee, or agent of 
that coimtry to transfer such articles by gift, sale, or other- 
wise, or 

(C) use or permit the use of such articles for purposes 
other than those for which furnished ; 

(2) it will maintain the security of such articles, and will pro- 
vide substantially the same degree of security protection afforded 
to such articles by the United States Government ; 

(3) it will, as the President msLj require, permit continuous 
observation and review by, and furnish necessary information to, 
representatives of the United States Government with regard to 
the use of such articles ; and 

(4) unless the President consents to other disposition, it will re- 
turn to the United States Government for such use or disposition 
as the President considers in the best interests of the United 
States, such articles which are no longer needed for the purposes 
for which furnished. 

(b) No defense articles shall be furnished on a grant basis to any 
country at a cost in excess of $3,000,000 in any fiscal year unless the 
President determines — 

(1) that such country conforms to the purposes and principles 
of the Charter of the United Nations ; 

(2) that such defense articles will be utilized by such country 
for the maintenance of its own defensive strength, or the de- 
fensive strength of the free world ; 

(3) that such country is taking all reasonable measures, con- 
sistent with its political and economic stability, which may be 
needed to develop its defense capacities ; and 

(4) that the increased ability of such country to defend itself 
is important to the security of the United States. 

(c) ^°2 The President shall regularly reduce and, with such delib- 
erate speed as orderly procedure and other relevant considerations, in- 
cluding prior commitments, will permit, shall terminate all further 



The last sentence was added by Sec. 201 (2) of the FAAct of 1969. 
«»22 use §2314. Former Sec. 5QG was redesignated Sec. 505 by Sec. 201(e) of the 
FAAct of 19G7. 

^ See. 201 (b) of the FAAct of 1971 substituted "or" in lieu of "and". 

Subsections (c) and (d) were added by Sec. 201(a) of the FAAct of 1962. 



78 



grants of military equipment and supplies to any country having suf- 
iicient wealth to enable it, in the judgment of the President, to main- 
tain and equip its own military forces at adequate strength, without 
imdue burden to its economy. 

(d)2°2 j^ny country which hereafter uses defense articles or defense 
services furnished such country under this Act, the Mutual Security 
Act of 1954, as amended, or any predecessor foreign assistance Act, in 
substantial violation of the provisions of this chapter or any agree- 
ments entered into pursuant to any of such Acts shall be immediately 
ineligible for further assistance. 

303 j^j^ considering a request for approval of any transfer of any 
weapon, weapons system, munitions, aircraft, military boat, military 
vessel, or other implement of war to another country, the iPresident 
shall not give his consent under subsection (a) (1) or (a) (4) to the 
transfer unless the United States itself would transfer the defense 
article under consideration to that coimtry, and prior to the date he 
intends to give his consent to the transfer, the President notifies the 
Speaker of the House of Representatives and the Committee on For- 
eign Relations of the Senate in writing of each such intended consent, 
the justification for giving such consent, the defense article for which 
he intends to give his consent to be so transferred, and the foreign 
country to which that defense article is to be transferred.^^* In addi- 
tion, the President shall not give his consent under subsection (a) (1) 
or (a) (4) to the transfer of any significant defense articles on the 
United States ]Munitions List unless the foreign country requesting 
consent to transfer agrees to demilitarize such defense articles prior to 
transfer, or the proposed recipient foreign country provides a com- 
mitment in writing to the United States Government that it will not 
transfer such defense articles if not demilitarized, to any other foreign 
country or person without first obtaining the consent of the President. 

(f) 303 Effective July 1, 1974, no defense article shall be furnished 
to any country on a grant basis unless such country shall have agreed 
that the net proceeds of sale received by such comitry in disposing of 
any weapon, weapons system, munition, aircraft, military boat, mili- 
tary vessel, or other im.plement of war received under this chapter will 
be paid to the United States Government and shall be available to pay 
all official costs of the United States Government payable in the cur- 
rency of that country, including all costs relating to the financins: of 
international educational and cultural exchange activities in which 
that country participates under the programs authorized by the Mutual 
Educational and Cultural Exchange Act of 1961.^°^ 

Sec. oO^,^°^ Special Authority.— fa) During the fiscal year 1975 
the President may, if he determines it to be in the security interests 
of the United States, order defense articles from the stocks of the 
Department of Defense and defense services for the purposes of part 



Former subsection (e), which related to conditions of eligibility, was repealed in 1971. 
Snbspctions re) and (f) were added by Sec. ]2^3) of the FAAct of 1973. 

3''* For other reports rennired to be submitted to Congress, see Reports to Congress, Index. 
m YoT text, pee page 648. 

3o«22 T^SC 2318. Former Sec. 510 was redesignated Sec. 506 by Sec. 201(j)(l) of the 
FA.\ct of 1967. 

^ Sec. 11 (!) of the FAAct of 1974 substituted the words "the fiscal year 1975" in lieu 
of "the fiscal vpar 1974." 

Sec. 12(4) (B) of the FAAct of 1973 substituted "In the security interests" In lieu 
of "vital to the security." 



79 

II, subject to subsequent reimbursement therefor from subsequent 
appropriations available for military assistance. The value of such 
amounts equivalent to the value of such orders under subsection (a) of 
orders under this subsection in the fiscal year 1975 shall not exceed 
$150,000,000.2*^^ 

(b) The Department of Defense is authorized to incur, in applicable 
appropriations, obligations in anticipation of reimbursements in 
this section. Appropriations to the President of such sums as may be 
necessary to reimburse the applicable appropriation, fund, or account 
for such orders are hereby authorized. 

Sec. 507.^^*^ Restrictions on Military Aid to Latin America. — 
* * * [Repealed— 1973] 

Sec. 508.^^0 Restrictions on Military Aid to Africa.—* * * 
[Repealed— 1973] 

Sec. 509.3^ Certification of Recipient's Capability.—* * * [Re- 
pealed— 1973] 

Sec. 510.2^^ Restrictions on Trainin^^ Foreign Military Stu- 
dents. — The number of foreign military students to be trained in the 
United States in any fiscal year, out of funds appropriated pursuant 
to this part, may not exceed a number equal to the number of foreign 
civilians brought to the United States under the Mutual Educational 
and Cultural Exchange xVet of 19G1 in the immediately preceding 
fiscal year. 

Sec. 511.2^2 Considerations in Furnishing Military Assistance. — 
Decisions to furnish military assistance made under this part shall 
be made in coordination with the Director of the United States Arms 
Control and Disarmament Agency and shall take into account his 
opinion as to wliether such assistance will — 

(1) contribute to an arms race; 

(2) increase the possibility of outbreak or escalation of con- 
flict ; or 

(3) prejudice the development of bilateral or multilateral arms 
control arrangements. 

Sec. 512.'^^ Military Assistance Advisory Groups and Mis- 
sions.— * * [Repealed— 1973] 

Sec. 513.21^ Military Assistance Authorizations for Thailand 
and Laos, and South Vietnam.3i5_(a) After June 30, 1972, no mili- 
tary assistance shall be furnished by the United States to Thailand 
directly or through any other foreign country unless that assistance is 
authorized under this Act or the Foreign Militaiy Sales Act.^^^ 

(b) After June 3,0, 1974, no military assistance shall be furnished 
by the United States to Laos directly or through any other foreign 
country unless that assistance is authorized under this Act or the 
Foreign Military Sales Act.^^^ 

Sec. 11(2) of the FAAct of 1074 substituted '"?150.000,000" in lieu of "?;250.000,000". 
Sec. 12(b) (5) of tiie FAAct of 1973 repealed Sees. 7)01, aOS. and 
22 use 2a21a. Sec. 510 was added by See. 203 of the FAAct of 1969. 
312 22 use 2321d. Sec. 511 was added by Sec. 201(f) of the FAAct of 1971. Sec. 150(c) 
of Public Law 94-141, Foreiprn Relations Authorization Act. Fiscal Year 1970. struck out 
the words "take into account" and inserted in lieu thereof "be made in coordination with 
the Director of the United States Arms Control and Disarmament Agencv and shall take 
into account his opinion as to". 
^'^,^ec. 12(5) of the FAAct of 1973 repealed Sees. 512 and 514. 
^* 22 use 2321f. Sec. 513 was added by Sec. 201 (f^ of the FAAct of 1971. 

See. 12(1) of the FAAct of 1974 substituted the words "Thailand and Laos, and 
letnam ' in lieu of "Thailand and Laos". 
^6 For text, see page 25.-. 

Sec. 12(6) (B) of the FAAct of 1973 added subsection (b). 
65-998 — 76 7 



80 



(c)^^^ After June 30, 1976, no military assistance shall be furnished 
by the United States to South Vietnam directly or through any other 
foreign country unless that assistance is authorized under this Act or 
the Foreign Military Sales Act.^^^ 

Sec. 514.3^9 Stockpiling of Defense Articles for Foreign 
Countries. — (a) Notwithstanding any other provision of law, no 
funds, other than funds made available imder this chapter or section 
401(a) of Public Law 89-367 (80 Stat. 37), or any subsequent corre- 
sponding legislation, may be obligated for the purpose of stockpiling 
any defense article or war reserve material, including the acquisition, 
storage, or maintenance of any war reserve equipment, secondary 
items, or munitions, if such article or material is set aside, reserved, 
or in any way earmarked or intended for future use by any foreign 
country imder this Act or such section. 

(b) The cost of any such article or material set aside, reserved, or 
in any way earmarked or intended by the Department of Defense for 
future use bv, for or on behalf of the country referred to in section 
401 (a) (1) of Public Law 89-367 (80 Stat. 37) shall be charged against 
the limitation specified in such section or any subsequent correspond- 
ing legislation, for the fiscal year in which such article or material is 
set aside, reserved, or otherwise earmarked or intended ; and the cost 
of any such article or material set aside, reserved or in any way ear- 
marked or intended for future use by, for, or on behalf of any other 
foreign country shall be charged against funds authorized under this 
chapter for the fiscal year in which such article or material is set aside, 
reserved, or otherwise earmarked. No such article or material may be 
made available to or for use by any foreign country unless such article 
or material has been charged against the limitation specified in such 
section, or any subsequent corresponding legislation, or against funds 
authorized under this chapter, as appropriate. 

Sec. 515.22^ Military Assistance Advisory Groups and Missions. — 
Effective July 1, 1976, an amount equal to each sum expended under 
any provision of law, other than section 504 of this Act, with respect 
to any military assistance advisory group, military mission, or other 
organization of the United States performing activities similar to such 
group or mission, shall be deducted from the funds made available 
under such section 504, and (1) if reimbursement of such amount is 
requested by the agency of the United States Government making the 
expenditure, reimbursed to that agency, or (2) if no such reimburse- 
ment is requested, deposited in the Treasury as miscellaneous receipts. 



Subjection (c) was added by Sec. 12(2) of the FAAct of 1074. 

22 use 2r521h. Sec. 514 was added by Sec. 15 of tlie FAAct of 1974. 

Former Sec. 514 entitled "Special Foreign Country Accounts" was repealed by Sec. 
12(5) of the FAAct of 1973. 

*^ 22 use 2321i. Sec. 515 was added by Sec. 16 of the FAAct of 1974. 



81 



Chapter 3— Foreign Military Sales ^^'^ 

Sec. 521.^23 Administration of Sales Programs Involving De- 
fense Articles and Services. — * [Repealed — 1968] 
Sec. 522.^23 gales from Stock.—* - * [Repealed— 1968] 
Sec. 523.-^2^ Procurement for Sales.—* * * [Repealed- 1968] 
Sec. 524.-'^^ Reimbursements. — (a)-'-^ Whenever funds made avail- 
able for use under this part have been or are used to furnish military 
assistance on cash or credit terms. United States dollar repayments, 
including dollar proceeds derived from the sale of foreign currency 
repayments to any agency or program of the United States Govern- 
ment, receipts received from the disposition of evidences of indebt- 
ness and charges (including fees and premiums) or interest col- 
lected ^-"^ shall be credited to a separate fund account ^-^ and shall be 
available until expended solely for the purposes of financing sales and 
guaranties, including the overhead costs thereof and, notwithstand- 
ing any provision of law relating to receipts and credits accruing to 
the United States Government, repayment in foreign currency may 
be used to carry out this part. Such amounts of the appropriations 
made available under this part (including unliquidated balances of 
funds heretofore obligated for financing sales and guarantees) as may 
be determined by the President shall be transferred to, and merged 
with the separate fund account.^ '° 

(b)^^^ (1) The special fund account established under subsection (a) 
of this section shall terminate as of the end of June 80, 1968, or on such 
earlier date as may be selected by the President. 

(2) Upon the termination of such fund account pursuant to para- 
graph (1), all of the assets of such fund account (including loans and 
other payments receivable) shall be transferred to a special account in 
the Treasury, which special account shall be available solely for the 
purpose of discharging outstanding liabilities and obligations of the 
United States arising out of credit sales agreements entered into, and 
guaranties issued, under this part, prior to June 30, 1968. Anv moneys 
m such special account in excess of the aggregate United States dollar 
amount of such liabilities and obligations shall be transferred from 
time to time to the general fund of the Treasury. 

(3) 332 * * * [Repealed— 1968] 

Sec. 525."32 Guaranties.— * * * [Repealed— 1968] 

SS'"^ new chapter heading was added by Sec. 201 (o) (2) of the FAAct of 1907 
paje 2?>5.T ^'^ ^''^^^ mv.t^vy Sales Act. Public Law 90l620. (See 

the''_fvVAc^i^rPf i^;?^"*- ^^^^ ^""^ redesignated Sec. 524 by Sec. 201(h)(1) of 

S^?V^'''''*'*^^'^," Al*''''-",^^^^" ^^■''^'^ "^'^^^'^ by Sec. 201(h)(2) of the FA\ct of lOfiT 

3^ l ie words "have been or" were added by Sec. 201 (e) (1) of the FA Aef ot" lOfi^ 

^:^2^i^'(^oHl^d^^f^^^^ "^^^ "receipts ^iceived%rom":^4;e'added by 

2^ Sn wffL'n n?''^ "^^'i ^"^^K^ S^^- (c) of the FAAct of 1 9r,0 
330 ^"^^^^t^^l (b) wa.s added by Sec. 201 (h) (?,) of the F \ \ct of i QnT 

pas^lerf^" ^^<^- «<^* ""^ Foreign\lii,?arV'^SaiV^ Act public Law 90-629. (See 



S2 

Chapter 4 — Security Supporting Agsistaitce 



Note. — Section 202 of the Foreign Assistance Act of 1971 
transferred the former Chapter 4 of Part I governing support- 
ing assistance to its present location as Chapter 4 of Part II of 
the Act. Section 202(b) of the Foreign Assistance Act of 1971 
provides as follows : 

"Chapter 4 of part I of the Foreign Assistance Act of 1961 is 
hereby repealed. Eeferences to such chapter or any sections 
thereof shall hereafter be deemed to be references to chapter 4 
of part II of the Foreign Assistance Act of 1961, as added by 
subsection (a) of this section, or to appropriate sections thereof. 
All references to part I of the Foreign Assistance Act of 1961 
shall hereafter be deemed to be references also to chapter 4 of 
part II, and all references to part II of such Act shall be deemed 
not to include chapter 4 of such part II." 



Sec. 531.^^* General Authority. — The President is authorized to 
furnish assistance to friendly countries, organizations, and bodies eli- 
gible to receive assistance under this Act on such terms and conditions 
as he may determine, in order to support or promote economic or 
political stability. The authority of this chapter shall not be used to 
furnish assistance to more than twelve countries in any fiscal year. 

Sec. 532.-^^^ Authorization. — There is authorized to be appro- 
priated to the President to carry out the purposes of this chapter 
for the fiscal year 1975 not to exceed $660,000,000 : ^^^^ Promded, Tliat 
where commodities are furnished on a grant basis under tkis chapter 
under arrangements which will result in the accrual of proceeds to 
the Government of Vietnam from the sale thereof, arrangements 
should be made to assure that such proceeds will not be budgeted by 
the Government of Vietnam for economic assistance projects or pro- 
grams unless the President or his representative has given prior writ- 
ten approval. Amounts appropriated under this section are authorized 
to remain available until expended. None of the funds authorized by 
this section shall be made available to the Government of Vietnam 
unless, beginning in January 1971, and quarterly thereafter, the Presi- 
dent of the United States shall determine that the accommodation rate 
of exchange, and the rate of exchange for United States Government 
purchases of piasters for goods and services, between said Government 
and the United State is fair to both countries. . ^ 

Sec. 533.3^^ United States Refund Claims.—* ^ * [Eepealecl— 
1973] 



Chapter 4 was added by Sec. 202(a) of the FAAct of 1971. ^ ^ ^ ^n^-. 

3?,4-ro j'lsr i5 '>;"'.46 Sec. 5.S1 was added by Sec. 202(a) of the FAAct of 1971. 

.-wr, oo rsr r,a 'Sof. 5.32 was ndded by Sec. 202 ^a) of the FAAct of 1.971. 

3.36 Spc IS nr the FAAct of 1974 substituted the words "for the fiscal year 1975 not to 
■exceed .«;V;(;n 000 000" in lien of "for the fiscal year 1974 not to exr-eed $12o,000,00'0 of 
w-hich not less than .$.50,000,000 shall be available solely for Israel'. 

FA A^iinror riaH Act 1975 : ".$(500,000,000: Provi,1rd, That of the funds appropriated 
nnrVr this nara'-raph not less than $.324,500,000 shall be allocated to Israel and not less 
than .S256.000,00O_ shall be allocated to Egypt and not less than $77,500,000 shall be al- 

'*''*--i^2'^ Usn' 'Svu-k. Sec. 53.3 was added .by Sec. 202(a) of the FAAct of 1971. Sec. 1.3(2) 
«f the FAAct of 1973 repealed Sec. 533. 



83 



PART III 
Chapter 1 — General Provisions 

Sec. 601.2^^ Encouragement of Free Enterprise and Private 
Participation. — (a) The Congress of the United States recognizes the 
vital role of free enterprise in achieving rising levels of production 
standards of living essential to economic progress and development. 
Accordingly, it is declared to be the policy of the United States to en- 
courage the efforts of other countries to increase the flow of inter- 
national trade, to foster private initiative and competition, to en- 
courage the development and use of cooperatives, credit unions, and 
savings and loan associations, to discourage monopolistic practices, to 
improve the technical efficiency of their industry, agriculture, and com- 
merce, and to strengthen free labor unions: and to encourage the con- 
tribution of United States enterprise toward economic strength of 
less developed friendly countries, through private trade and invest- 
ment abroad, private participation in programs carried out under this 
Act (including the use of private trade channels to the maximum ex- 
tent practicable in carrying out such programs) , and exchange of ideas 
and technical information on the matters covered by this subsection. 

(b) In order to encourage and facilitate participation by private 
enterprise to the maximum extent practicable in achieving any of the 
purposes of this Act, the President shall — 

(1) make arrangements to find, and draw the attention of 
private enterprise to opportunities for investment and develop- 
ment in less developed countries and areas ; 

(2) "^^ establish an effective system for obtaining adequate in- 
formation with respect to the activities of, and opportunities for, 
nongovernmental participation in the development process, and 
for utilizing such information in the planning, direction, and 
execution of programs carried out under this Act, and in the co- 
ordination of such programs with the ever-increasing develop- 
mental activities of nongovernmental United States institutions ; 

(3) ^*° accelerate a p]-ogram of negotiating treaties for com- 
merce and trade, including tax treaties, which shall include provi- 
sions to encourage and facilitate the flow of private investment to, 
and its equitable treatment in, friendly countries and areas par- 
ticipating in programs under this Act ; 

(4) 340 spek. consistent with the national interest, compliance by 
other countries or areas with all treaties for commerce and trade 
and taxes, and take all reasonable measures under this Act or other 
authority to secure compliance therewith and to assist United 
States citizens in obtaining just compensation for losses sustained 
by them or payments exacted from them as a result of measures 
taken or imposed by any country or area thereof in violation of 
any such treaty ; 



^'^i'^I^^.P^^^^ f ^^^^^ 202(a) of the FAAct of 1971. 

use 1^2346. Sec. 531 was added by Sec. 202(a) of the FAAct of 1971. 

o'^^^?^^^)^\^,4J ^^^^^ Sec. 301(a) (1) of the FAAct of 1966. 
■^"hec. 301(a)(2) of the FAAct of 1966 redesignated paragraphs (2), (3), (4), (5). and 
^^^^^^tP^'"^^'"'''P^'^ ^4). (5). (6).and (7) respectiveh^ 

the FAAcro/l96^'^^" ^^^^^ appeared at this point, was struck out by Sec. 301(a)(1) of 



84 



(5) 2^^ to the maximnm extent practicable carry out programs 
of assistance through private channels and to the extent practica- 
ble in conjunction with local private or governmental participa- 
tion, including loans under the authority of section 201 to any 
individual, corporation, or other body of persons ; 

(6) ^^^ take appropriate steps to discoura<T:e nationalization, ex- 
propriation, confiscation, seizure of ownership or control of private 
investment and discriminatory or other actions, having the effect 
thereof, undertaken by countries receiving assistance under this 
xlct, which divert available resources essential to create new 
wealth, employment, and productivity in those countries and 
otherwise impair the climate for new private investment essential 
to the stable economic growth and development of those 
countries : "^^^ 

(7) utilize wherever practicable the services of United States 
private enterprise (including, but not limited to, the services of ex- 
perts and consultants in technical fields such as engineering) ; 

(8) utilize wherever practicable the services of United States 
private enterprise on a cost-plus incentive fee contract basis to 
provide the necessary skills to develop and operate a specific proj- 
ect or program of assistance in a less developed friendly country 
or area in any case in which direct private investment is not read- 
ily encouraged, and provide where appropriate for the transfer 
of equity ownership in such project or program to private investors 
at the earliest feasible time. 

(c)^^^ (1) There is hereby established an International Private In- 
vestment Advisory Council on Foreign Aid to be composed of such 
niimbei' of leading American business specialists as may be selected, 
from time to time, by the Administrator of the Agency for Interna- 
tional Development for the purpose of carrying out the provisions of 
this subsection. The members of the Council shall serve at the pleasure 
of the Administrator, who shall designate one member to serve as 
Chairman. 



S42^pr ?,0'Ha)<'2) of tlie FA Act nf 10^,3 snhstitnted the words "to the maximum extent 
practicable"' for the words "wherever appropriate", and substituted a semicolon for the 
period at the end 'if the paragraph. 

Para jrraphs (0) and (7), formerly paragranhs (5) and (6), were added bv Sec. 301 
(a) (H) of the PA Act of 1!^6.3. 

Sf'c. PA)ia.)(o) of the FAAct of IDGG struck out "and" at the end of paragraph (6) : 
substituted the semicolon in lieu of a period at the end of paragraph (7), and added para- 
graph (8). 

pnbsection fc) was amended by Sec. 301(a)(4) of the FAAct of 1966. It formerly 
read as follows : 

"(c)(1) There is hereby established an Advisory Committee on Private Enterprise in 
Foreign Aid. The Advisory Comriilttee shall carry out studies and make recommendations 
for achieving the most pfTective utilization of the pi-ivate enterpi'ise provisions of this 
Act to the head of the Agency charged with administering the programs under part I of 
this Act. who shall appoint the Committee. 

"(2) >Tembers of the Advisory Committee shall renresent the public Interest and shall 
be selected from the budness, labor and professional world, from the universities and 
foundatioii-?, and from am.ong persons with extensive experience in government. The 
Advisory Committee shall consist of not more than nine members, and one of the members 
shall be designated ^s chairman. 

"(3) Alenibers of the Advisory Committee shall receive no compensation for their 
ser'-'ic'^s but shall be entitled to reimbursement in accordance with sonfion .1 of the Admin- 
istrative Expenses Act of 1946 (r> TT.S.C. 7.'^I)-2) for travel and other expenses incurred 
In attending meetings of the Advisorv Committee. 

"(4) The Advisory Committee shall, if possible, meet not less frequently than once 
each month, shall submit such interim reports as the Committee finds advisabV and 
shall subniit a f^nal report not Inter than June •'^0. lOn.'), whereunon the Comn^lttee "shall 
cease_ to exist. Such reports shall be made available to the pul)lic -and to the Congress. 

'(5) The expenses of the Cojnmittee. which shall not exceed ?50.000, shall be^paid 
from funds otherwise available under this Act." 



85 



(2) It shall be the diitv of the Council, at the request of the Adminis- 
trator, to make recommendations to the Administrator with respect to 
particular aspects of programs and activities under this Act where pri- 
vate enterprise can play a contributing role and to act as liaison for 
the Administrator to involve specific private enterprises in such pro- 
grams and activities. 

( 3) The members of the Advisory Council shall receive no compen- 
sation for their services but shall be entitled to reimbursement in ac- 
cordance with section 5703 of title 5 of the United Stales Code ^"^^ for 
travel and other expenses incurred by them in the performance of their 
functions under this subsection. 

(4) The expenses of the Advisory Council shall be paid by the Ad- 
ministrator from funds otherAvise available under this Act. 

((1)2^" It is the sen^(> of Congress tlir.t the Agejicy for International 
Development should continue to encourage, to the maximum extent 
consistent with the national interest, the utilization of engineering and 
professional services of United States firms (including, but not limited 
to, any corporation, company, partnership, or other association) or by 
an afii-liate of such United States firms in connection with capital proj- 
ects financed by funds authorized under this Act. 

Sec. 602.2'^^ STuall Business. — (a) Insofar as practicable and to the 
maximum extent consistent with the accomplishment of the purposes 
of this Act, the President shall assist American small business to par- 
ticipate equitably in the furnishing of commodities, defense articles, 
and services (including defense services) financed with funds made 
available uncle i' this Act — 

(1) by causing to be made available to suppliers in the United 
States, and particularly to small independent enterprises, infor- 

(2) by causing to be made available to prospective purchasers 
proposed to be financed with such funds; 

(2) by causing to be made available to prospective purchases 
in the countries and areas receiving assistance under this Act 
information as to such commodities, articles, and services pro- 
duced by small independent enterprises in the United States : and 

(3) by providing for additional services to give small business 
better opportunities to participate in the furnishing of such com- 
modities, articles, and services financed with such funds. 

(b) There shall be an Office of Small Business, headed by a Special 
Assistant for Small Business, in such agency of the United States 
Gov ernment as the President may direct, to assist in carrying out the 
provisiors of subsection (a) of this section. 

(c) The Secretary of Defense shall assure that there is made avail- 
able to suppliers in the United States, and particularly to small inde- 
pendent enterprises, information with respect to purchase made by 
the Department of Defense pursuant to part II, such information to 
be furnished as far in advance as possible. 

Sec. 603.^^'' Shipping on United States Vessels. — The ocean 
transportation between foreign countries of commodities and defense 



aw Thp wnrris "ri70?{ of tltlp o of the Fnited Statps Cofle" were snhstitiited for "5 of the 
Administrative Expenses Act of 1946 (5 U.S.C. 73b-2)" by Sec. 301(a) of the FAAct of 
19nT. 

Subsection (dl was added by Sec. 301(b) of the FAAct of 1964. 
=^ 22 r s r 5 23.t'^ 

22 U.S.C." § 2553.' 



86 



articles purchased with foreign currencies made available or derived 
from funds made available under this Act or the Agricultural Trade 
Development and Assistance Act of 1954:, as am.ended (7 U.S.C. 
1691 et seq.) , and transfers of fresh fruit and products thereof under 
this Act shall not be governed by the provisions of section 901(b) of 
the Merchant Marine Act of 1936, as amended (46 U.S.C. 1241), or 
any other law relating to the ocean transportation of commodities on 
United States flag vessels. 

Sec. 604.^^2 Procurement. — (a) Funds made available under this 
Act may be used for procurement outside the United States only if the 
President determines that such procurement will not result in adverse 
effects upon the economy of the United States or the industrial mobili- 
zation base, with special reference to any areas of labor surplus or to 
the net position of the United States in its balance of payments with 
the rest of the world, which outweigh the economic or other advantages 
to the United States of less costly procurement outside the United 
States,^^^ and only if the price of any commodity procured in bulk is 
lower than the market price prevailing in the United States at the 
time of procurement, adjusted for differences in tlie cost of transpor- 
tation to destination, quality, and terms of payment.^'* 

(b) No funds made available under this Act shall be used for the 
purchase in bulk of any commodities at prices higher than the market 
price prevailing in the United States at the time of purchase, adjusted 
for differences in the cost of transportation to destination, quality, and 
terms of payment. 

(c) In providing for the procurement of an3" agricultural com- 
modity or product thereof available for disposition under the Agri- 
cultural Trade Development and Assistance Act of 1954, as amendecV'^^ 
for transfer by grant under this Act to any recipient country in ac- 
cordance with its requirements, the President shall, insofar as practi- 
cable and when in furtherance of the purposes of this Act, authorize 
the procurement of such agricultural commodity only vv'ithin the 
United States except to the extent that such agricultural commodity 
is not available in the United States in sufficient quantities to supply 
emergency requirements of recipients under this Act. 

(d) In providing assistance in the procurement of commodities in 
the United States, United States dollars shall be made available for 
marine insurance on such commodities where such insurance is placed 
on a competitive basis in accordance with normal trade practice pre- 
vailing prior to the outbreak of World War II : Provided^ That in the 
event a participating country, by statute, decree, rule, or regulation, 
discriminates against any marine insurance company authorized to do 



For text, see page 294. 
s-^i For text, see page 222. 
8=2 22 TT.S.C. § 2.3.54. 

See also Sec. 201(b)(6). Sec. 211(a) (5) and (6), the penultimate sentence of Sec. 
211 (a). Soc. 2.'^7k) nnd Sec. 2olb)4> of this Act. 
85* See also Sec. 604(b) of this Act. 

855 Sec. 801 (b)(1) of the FAAct of 1966 struck out the word "surplus" -which appeared 
before the word "asrricnUnral". 

The words "or product thereof available for disposition under the AerricuUural Trade 
Development and Assistance Act of 10.54, as amended." were added by Sec. ."^Oi (b)(1) of 
the FAAct of 1966. For text of the Agricultural Trade Development and As.9istance Act, 
see page 284. 



87 



business in any State of the United States, then commodities pur- 
chased with fimds provided hereunder and destined for such country 
shall be insured in the United States against marine risk with a com- 
pany or companies authorized to do a marine insurance business in any 
State of the United States. 

(e)^^' Xo funds made available under this Act shall be used for the 
procurement of any agricultural commodity or product thereof outside 
the United States when the domestic price of such commodity is less 
than parity. 

(f ) 358 A^-Q funds authorized to be made available to carry out part I 
of this Act shall be used under any commodity import program to 
make any payment to a supplier unless the supplier has certified to the 
agency primarily responsible for administering such part I, such in- 
formation as such agency shall by regulation prescribe, including but 
not limited to, a description of the commodity supplied by him and 
its condition, and on the basis of such information such agency shall 
have approved such commodity as eligible and suitable for financing 
under this Act. 

Sec. 605.^^^ Retention and Use of Certain Items and Funds.^^° — 

(a) Any commodities and defense articles procured to carry out this 
Act shall be retained by, or upon reimbursement, transferred to, and 
for the use of, such agency of the United States Government as the 
President may determine in lieu of being disposed of to a foreign 
country or international organization, whenever in the judgment of 
the President the best interests of the United States will be served 
thereby or wlienever such retention is called for by concurrent resolu- 
tion. Any commodities or defense articles so retained may be disposed 
of without regard to provisions of law relating to the disposal of prop- 
erty owned by the United States Government, Avhcn necessary to pre- 
vent spoilage or wastage of such commodities or defense articles or to 
conserve the usefulness thereof. Funds realized from any disposal or 
transfer shall revert to the respective appropriation, fund, or account 
used to procure such commodities or defense articles or to the appro- 
priation, fund, or account currently available for the same general 
purpose. 

(b) Wlienever commodities are transferred to the United States 
Governm.ent as repayment of assistance under this Act, such commodi- 
ties may be used in furtherance of the purposes and within the limita- 
tions of this Act. 

(^Q^Gi Funds realized as a result of any failure of a transaction fi- 
nanced under authority of part I of this Act to conform to the require- 
ments of this Act, or to applicable rules and regulations of the United 
States Government, or to the terms of any agreement or contract en- 
tered into under authority of part I of this Act, shall revert to the re- 
spective appropriation, fund, or account used to finance such transac- 
tion or to the appropriation, fund, or account currently available for 
the same general purpose. 



-•7 Subsection (e) was added by Sec. 801(b) (2) of the FAAct of 1966. 
^-=5 Subsection (f) was added by Sec. 301(a) of the FAAct of 1968. 
22 use § 2355. 

*"> Sec. 301(a)(1) of the FAAct of 1965 substituted "Certain Items and Funds" for 
"Items". 

Subsections (c) and (d) were added by Sec. 301(a)(2) of the FAAct of 1965. 



88 



(d) Funds realized by the United States Government from the 
sale, transfer, or disposal of defense articles returned to the United 
States Government by a recipient country or international organiza- 
tion as no longer needed for the purpose for which furnished shall be 
credited to the respective appropriation, fund, or account used to pro- | 
cure such defense articles or to the appropriation, fund, or account cur- 
rently available for the same j^eneral purpose. 

Sec. 606.3^^ Patents and Technical Information. — (a) Whenever, 
in connection with the furnisliino- of assistance under this Act — 

(1) an invention or discovery covered by a patent issued by the 
United States Government is practiced within the United States 
without the authorization of the owner, or 

(2) information, which is (A) protected by law, and (B) held 
by the United States Governmeut subject to restriction^^ imposed 
by the owner, is disclosed by the United States Government or any 
of its ofiicers. employees, or agents in violation of such restrictions. 

the exclusive remedy of the owner, except as provided in subsection 
(b) of this section, is to sue the United States Government for reason- 
able and entire compensation for sucli practice or disclosure in the 
district court of the United Stntes for the district in which such ovv'ner 
is a resident, or in the Court of Claims,, witliin six yeais after the cause 
of action arises. Any peiiod during which the United States Govern- 
ment is in possession of a written claim under subsection (b) of this 
section before mailing a notice of denial of tliat claim does not count in 
computing the six years. In any such suit, the United States Govern- 
ment may plead any defense that may be pleaded by a private person 
in such an action. The last paragraph of section 1498(a) of title 28 of 
the United States Code shall apply to inventions and information cov- 
ered by this section. 

(b) Before suit against the United States Government has been 
instituted, the head of the agency of the United States Government 
concerned may settle and pay any claim arising under the circum- 
stances described in subsection (a) of this section. No claim may be 
paid under this subsection unless the amount tendered is accepted by 
the claimant in full satisfaction. 

(c) Funds appropriated pursuant to this Act shall not be expended 
by the United States Government for the acquisition of any drug 
product or pharmaceutical product manufactured outside the United 
States if the manufacture of such drug product or pharmaceutical 
product in the United States would involve the use of, or be covered 
by, an unexpired patent of the [Tnited States which has not previously 
been held invalid by an unappealed or unappealable judgment or 
decree of a court of competent jurisdiction, unless such manufacture 
is expressly authorized by the owner of such patent. 

Sec. 607.^^3 Furnishmg of Services and Commodities. — (a)^^* 
Whenever the President determines it to be consistent with and in 
furtherance of the purposes of part I and within the limitations of 
this Act, any agency of the United States Government is authorized 



3«2 22 TT.S.C. 8 
^'■22 U.S.C. § 2357. 

Subsection designation "(a)" and subsection (b) were added by Sec. SOl(b) of the 
FAAct of 1968. 



89 



to furnish services and commodities on an advance-of-funds or reim- 
bursement basis to friendly countries, international organizations, 
the American Ked Cross, and voluntary nonprofit relief agencies 
registered with and approved by the Advisory Committee on Vohmtary 
Foreign Aid. Such advances or reimbursements may be credited to the 
currently applicable appropriation, account, or fund of the agency 
concerned and shall be available for the purposes for which such 
appropriation, account, or fund is authorized to be used, under the 
following circumstances : 

( 1 ) Advances or reimbursements which are received under this 
section within one hundred and eighty days after the close of the 
fiscal year in which such services and commodities are delivered. 

(2) Advances or reimbursements received pursuant to agree- 
ments executed under this section in which reimbursement will 
not be completed within one hundred and eighty days after the 
close of the fiscal year in which such services and commodities are 
delivered : Provided^ That such agreements require the payment 
of interest at the current rate established pursuant to section 2 
(b)(1)(B) of the Export-Import Bank Act of 1945 (59 Stat. 
526), and repayment of such ]:)rincipal and interest does not 
exceed a period of three years from the date of signing of the 
agreement to provide the service : Provided further^ That funds 
available for this paragraph in any fiscal year shall not exceed 
$1,000,000 of the total funds authorized for use in such fiscal year 
by chapter 1 of part I of tliis Act, and shall be available only to 
the extent provided in appropriation Acts. Interest shall accrue 
as of the date of disbursement to the agency or organization 
providing sncli services.^^ ' 

(b)^'^'' Xo rrovcriinient-cwned excess property sliall be made avail- 
able under this section, section 608, or otherwise in furtherance of the 
purposes of part I of this Act. unless, before the shipment of such 
property for use in a specified country (or transfer, if the property is 
already in such country), the agency administering such part I 
has approved such shipment (or transfer) and made a written 
determination — 

(1) that there is a need for such property in the quantity re- 
quested and that such property is suitable for the purpose 
requested ; 

(2) as to the status and responsibility o,f the designated end-user 
and his ability effectively to use and maintain such property; and 

(3) that the residual value, serviceability, and appearance of 
such property would not reflect unfavorably on the image of the 
United States and would justify the costs of packing, crating, 
handling, transportation, and other accessorial costs, and that the 
residual value at least equals the total of these costs. 

Sec. 608.'^^^ Advance Acquisition of Property. — (a) It is the sense 
of the Congress that in furnishing assistance under part I excess per- 



3«5Sec. 315 of P.L. 94-161 (89 Stat. 849) substituted the words at this point com- 
mencing with "Such advances or reimbursements may be credited * * *"' in lieu of 
"Such advances or reimbursements which are received under this section within one 
hundred and eisrhty days after the close of the fiscal year in which such services and 
commodities are delivered, may be credited to the current applicable appropriation, 
account, or fund of the agency concerned and shall be available for the purposes for 
which such appropriation, account, or fund is authorized to be used." 

•» 22 U.S.C. § 2358. 



90 



Sonal property should be utilized wherever practicable in lieu of the 
.procurement of new items for United States-assisted projects and pro- 
:^rams.2" The President is authorized to maintain in a separate ac- 
count, which shall, notwithstanding section 1210 of the General Appro- 
priation Act, 1951 (64 Stat. 765), be free from fiscal year limitations, 
$5,000,000 of funds made available under section 212, which may be 
used to pay costs (including personnel costs) of acquisition, storage, 
renovation and rehabilitation, packing, crating, handling, transporta- 
tion, and related costs of property classified as domestic or foreign 
excess property pursuant to the Federal Property and Administrative 
Services Act of 1949, as amended (40 U.S.C. 471 et seq.) , or other prop- 
erty, in advance of known requirements therefor for use in furtherance 
of the purposes of part I : Provided^ That the amount of property clas- 
sified as domestic excess property pursuant to the Federal Property 
and Administrative Services Act of 1949, as amended, held at any one 
time pursuant to this section shall not exceed $15,000,000 in total 
original acquisition cost. Property acquired pursuant to the preceding 
sentence may be furnished ( 1 ) pursuant to any provision of part I for 
which funds are authorized for the furnishing of assistance, in which 
case the separate account established pursuant to tliis section shall be 
repaid from funds made available for such provision for all costs in- 
curred, or (2) pursuant to section 607, in which case such separate 
account shall be repaid in accordance with the provisions of that 
section for all costs incurred. 

(b) Property classified as domestic excess property under the Fed- 
eral Property and Administrative Services Act of 1949, as amended, 
shall not be transferred to the agency primarily responsible for ad- 
ministering part I for use pursuant to the provisions of part I or sec- 
tion 607 unless (1) such property is transferred for use exclusively by 
an agency of the United States Government, or (2) it has been deter- 
mined in the same manner as provided for surplus property in section 
203 (j) of the Federal Property and Administrative Services Act of 
1949, as amended, that such property is not needed for donation pur- 
suant to that subsection. The foregoing restrictions shall not apply to 
the transfer in any fiscal year for use pursuant to the provisions of 
part I of amounts of such property with a total original acquisition 
cost to the United States Government not exceeding $45,000,000. 

Sec. 609.^*^^ Special Account. — (a) In cases where any commodity 
is to be furnished on a grant basis under chapter 4 of part I under ar- 
rangements which will result in the accrual of proceeds to the recipient 
country from the sale thereof, the President shall require the recipient 
country to establish a Special Account, and 

(1) deposit in the Special Account, under terms and conditions 
as may be agreed upon, currency of the recipient country in 
amounts equal to such proceeds ; 

(2) nnke available to the United States Government such por- 
tion of the Special Account as may be determined by the President 



»«' "^bis spritPTiPP wns ndrlpd by SJfo. HOI fb"* of tbp FAAcf of 1007. 

Tbe words " (Incliulincr personnel costs)," were added by Sec. 301(c) of the FAAot 
of 1000. 

22 U.S.C. § 2359. 



91 



to be necessary for the requirements of the United States Govern- 
ment : Provided^ That such portion shall not be less than 10 per 
centum in the case of any country to which such minimum re- 
quirement has been applicable under any Act repealed by this Act ; 
and 

(3) utilize the remainder of the Special Account for programs 
agreed to by the United States Government to carry out the pur- 
poses for which new funds authorized by this Act would them- 
selves be available: Provided^ That whenever funds from such 
Special Account are used by a country to make loans, all funds re- 
ceived in repayment of such loans prior to termination of assist- 
ance to such countiy shall be reused only for such purposes as 
shall have been agreed to between the country and the United 
States Government, 
(b) Any unencumbered balances of funds which remnin in the 
Account upon termination of assistance to such country under this 
Act shall be disposed of for such purposes as may, subject to approval 
by Act of the Congress, be agreed to between such country and the 
United States Government. 

Sec. 610. ''^ Transfer Between Accounts. — (a)^"! Whenever the 
President determines it to be necessary for the purposes of this Act, 
not to exceed 10 per centum of the funds made available for any proA'i- 
sion of this Act (except funds made available pursuant to title IV of 
chapter 2 of part I)^'- may be transferred to. and consolidated witli, 
the funds made available for any other provision of this Act, (except 
funds made available iindei- chapter '1 of part II of this Act)-'"^ and! 
may be used for any of the purposes for which such funds may be 
used, except that the total in the provision for the benefit of which the 
transfer is made shall not be increased by more than 20 per centum 
of the amount of funds made available for such provision.^"* 

(b) The authority contained in this section and in sections 451, 
506,^"^ and 614 shall not be used to augment a]:)pi"opriations made avail- 
able pursuant to sections 636 (g)(1) and 637 or used otherwise to 
finance activities Avhich normally Avould be financed from appropria- 
tions for administrative expenses. Xot to exceed $9,000,000 of tlie 
funds appropriated under section 402 of this Act for any fiscal year 
may be transferred to and consolidated with appropriations made 
under section 637(a) of this Act for the same fiscal year, subject to 
the further limitation that fnnds so transferred shall be available 
solely for additional administrative expenses incurred in connection 
with proirrams in Vietnam. "^"'^ 



f0 22 use 23G0. 

'"1 Subsection designation "(a)" and subsection "(b)" were added by Sec. 301(a) of the 
FA Act of 1962. 

The parenthetical phrase w as added by Spc. 801 of the FA Act of 1000 

The parenthetical phrase was added by Sec. 19(a)(1) of the FAAct of 1974 

But see Sees. 201 (c) and 251 f c) of this Act. ^ i e r ii^s^ct or i j 4. 

•'$5^00 OOfV' ^^^^""^ ^^^^ substituted "oOG" for "510-' and "«:9.000.000" for 

loS^^^^^^ e^^^'.^P^ion of tlie chaufre noted in footnote 37.-, Sec. 301 fd) of the FAAct of 
1960 ainenrled this sentence, which foruierlv r^ad as follows: "Xot to excee^l 400 000 
fiLlV^^ """^-.n^^^^l'''^'''''^^^*''^ of this Act after Januarv 'l. IfiOO." for" the 

L^tiiJ i^^^'-rP^ V^^f-^ ¥ ti*ansf erred to and consolidated with appropriations made under 
s<^ctioii OoTfa) of this Act tor .s,i,-h tis-,-.) yea--, snhipct to th- limitations of suhsp.-^ion r-, ) 
flvJ nhif^o^Iri" subject to the further limitation that funds so transferred shall be 

Republic of V^^^^^^ expenses iucuriea in connection with pro-rams :n the 



92 



(c) Any funds which the President has notified Congress pursuant 
to section 653 that he intends to provide in military assistance to any 
country may be transferred to, and consolidated with, any other funds 
he has notified Concjress pursuant to such section that he intends to 
provide to that country for development assistance purposes. 

Sec. 611."^ Completioii of Plans and Cost Estimates. — (a) No 
agreement or grant which constitutes an obligation of the United 
States Government in excess of $100,000 under section 1311 of the 
Supplemental Appropriation Act, 1955, as amended (31 U.S.C. 
200), shall be made for any assistance authorized under titles I, II, 
and VI of chapter 2 and chapter 4 of part I — 

(1) if such agreement or grant requires substantive technical 
or financial planning, until engineering, financial, and other plans 
necessary to carry out such assistance, and a reasonably firm 
estimate of the cost to the United States Government of providing 
such assistance, have been completed ; and 

(2) if such agreement or grant requires legislative action with- 
in the recipient country, unless such legislative action may reason- 
ably be anticipated to be completed in time to permit the orderly 
accomplishment of the purposes of such agreement or grant. 

(b) Plans required under subsection (a) of this section for any 
water or related land resource construction project or program shall 
include a computation of benefits and costs made insofar as practicable 
in accordance with the procedures set forth in the Memorandum of 
the President dated May 15, 1962,^^^ with respect to such computations. 

(c) To the maximum extent practicable, all contracts for construc- 
tion outside the United States made in connection with any agreement 
or grant subject to subsection (a) of this section shall be made on a 
competitive basis. 

(d) Subsection (a) of this section shall not apply to any assistance 
furnished for the sole purpose of preparation of engineering, financial, 
and other plans. 

( 3^ 382 jj^ addition to any other requirements of this section, no as- 
sistance authorized under titles I, II, or VI of chapter 2 or chapter 4 
of part I of this Act shall be furnished with respect to any capital 
assistance project estimated to cost in excess of $1,000,000 until the 
head of the agency primarily responsible for administering part I of 
the Act has received and taken into consideration a certification from 
the principal officer of such agency in the country in which the project 
is located as to the capabilit}^ of the country (both financial and human 
resources) to effectively maintain and utilize the project taking into 
account among other things the maintenance and utilization of proj- 
ects in such countrj^ previously financed or assisted by the United 
States. 



3"' Snhsertion (c> was added by Sec. 19(a) (2) of the FAAct of 1974. 

378 22 r.S.C. § 2361 . 

3"8 For text, see page 204. 

S;ec. "01 (b) of the FAAct of 1062 snbstifuted ", TI. and VI" for "and II". 

s**! Sec. 301(c) of the FAAct of 1063 substituted the words "the Memorandum of the 
President dated May 15, 1962," for the words "circular A-47 of the Bureau of the Budget". 
This Memorandum of the President, together with related papers is contained in Senate 
Document 97, 87th Congress, 2d Session, and in Annex B of AID M.O. 1221.2, October 1, 
1964. 

Subsection (e) was added by Sec. 301(d) of the FAAct of 1967. 



93 



Sec. 612.3^^ Use of Foreign Currencies. — (a)^^^ Except as other- 
wise provided in this Act or other Acts, foreign currencies received 
either (1) as a result of the furnishing of nonmilitary assistance 
under the Mutual Security Act of 1954, as amended, or any Act re- 
pealed thereby and unobligated on the date prior to the effective 
date of this Act, or (2) on or after the effective date of this Act, as 
a result of the furnishing of nonmilitary assistance under the Mutual 
Security Act of 1954, as amended, or any Act repealed hereby, or 
(3) as a result of the furnishing of assistance under part I, which are 
in excess of the amounts reserved under authority of section 105(d) 
of the Mutual Educational and Cultural Exchange Act of 1961 or 
any other Act relating to educational and cultural exchanges, may be 
sold by the Secretary of the Treasury to agencies of the United States 
Government for payment of their obligations outside the United 
States, and the United States dollars received as reimbursement shall 
be deposited into miscellaneous receipts of the Treasury. Foreign 
currencies so received which are in excess of the amounts so reserved 
and of the requirements of the United States Government in payment 
of its obligations outside the United States, as such requirements may 
be determined from time to time by the President, shall be available 
for the authorized purposes of part I in such amounts as may be 
specified from time to time in appropriation Acts. 

(b)^^^ Any Act of Congress making appropriations to carry out 
programs under this or any other Act for United States operations 
abroad is hereby authorized to provide for the utilization of United 
States-owned excess foreign currencies to carry out any such opera- 
tions authorized by law. 

As used in this subsection, the term "excess foreign currencies" 
means foreign currencies or credits owned by or owed to the United 
State? which are, under applicable agreements with the foreign coun- 
try concerned, available for the use of the United States Government 
and are determined by the President to be excess to the normal require- 
ments of departments and agencies of the United States for such cur- 
rencies or credits and are not prohibited from use under this subsec- 
tion by an agreement entered into with the foreign country concerned. 

The President shall take all appropriate steps to assure that, to the 
maximum extent possible. United States-owned foreign currencies are 
utilized in lieu of dollars. Dollar funds made available pursuant to 
this Act shall not be expended for goods and services when United 
States-owned foreign currencies are available for such purposes unless 
the administrative official approving the voucher certifies as to the rea- 
son for the use of dollars in each casc.^^® 



22 use § 2362 

Snbspotion dpsienation "(aV was added bv Sec. 301(d) (]) of the FAAct of 1963. 

22 use § 2455. For text see p. 653. 
ss-' Subsection (c) was ac^ded by Sec. 301 fc) of the FAAct of 1964. Sec. 301(b) of the 
FAAct of 1965 redesisnated subsection (c) as subsection (b). Former subsection (b) was 
redesisrnated subsection (t) of Sec. 104 of the Afrncultural Trade Development and 
Assistance Act of 1954. as amended (P.L. 4R0). and was also amended bv Sec. 2 of P.L. 
88-638 (1964 Amendments to the Ajrricultural Trade Development and' Assistance Act 
of 1954). The Asrricultural Trade Development and Assistance Act of 1954, as amended, 
was amended by P.L. 89-808 (Food for Peace Act of 19G6) and Sec. 103 (m) is comparable 
to former Sec. 104 (t). 

,_^!The first sentence of this para^aph was struck out by Sec. 301(b) of the FAAct of 
jJbo. It read as follows : "The President shall take all appropriate steps to assure that, 
to the maximum extent possible, United States-owned excess foreign currencies are utilized 
in heu of dollars." 

This paragraph was added by Sec. 301(b) of the FAAct of 1965. 



94 



(c) ^^9 In addition to funds otherwise available, excess foreign cur- 
rencies, as defined in subsection (b) , may be made available to friendly 
foreign governments and to private, nonprofit United States organi- 
zations to carry out voluntary family planning program^s in countries 
which request such assistance. No such program shall be assisted unless 
the President has received assurances that in the administration of 
such program the recipient will take reasonable precautions to insure 
that no person receives any family planning assistance or supplies un- 
less he desires such services. The excess foreign currencies made avail- 
able under this subsection shall not, in an}^ one year, exceed 5 per 
centum of the aggregate of all excess foreign currencies. As used in 
this subsection, the term "voluntary family planning program" in- 
cludes, but is not limited to, demographic studies, medical and psycho- 
logical research, personnel training, the construction and staffing of 
clinics and rural health centers, specialized training of doctors and 
paramedical personnel, the manufacture of medical supplies, and the 
dissemination of family planning information, medical assistance, and 
supplies to individuals who desire such assistance. 

(d) ^^° In furnishing assistance under this Act to the government 
of any country in which the United States owns excess foreign cur- 
rencies as defined in subsection (b) of this section, except those cur- 
rencies generated under the Agricultural Trade Development and As- 
sistance Act of 1954, as amended,^®^ the President shall endeavor to 
obtain from the recipient country an agreement for the release, on such 
terms and conditions as the President shall determine, of an amount of 
such currencies up to the equivalent of the dollar value of assistance 
furnished by the United States for programs as may be mutually 
agreed upon by the recipient country and the United States to carry 
out the purposes for which new funds authorized by this Act would 
themselves be available. 

Sec. 613,^^^ Accounting, Valuation, Reporting, and Administra- 
tion of Foreign Currencies.^^^ — (a) Under the direction of the Presi- 
dent, the Secretary of the Treasury shall have responsibility for valua- 
tion and central accounting with respect to foreign credits (including 
currencies) owed to or owned by the United States. In order to carry 
out such responsibility the Secretary shall issue regulations binding 
upon all agencies of the Government. 

(b) The Secretary of the Treasury shall have sole authority to 
establish for all foreign currencies or credits the exchange rates at 
which such currencies are to be reported by all agencies of the 
Government. 

(c) Each agency or department shall report to the Secretary of the 
Treasury an inventory as of June 30, 1961, showing the amount of all 
foreign currencies acquired without payment of dollars on hand of 
each of the respective countries, and the Secretary of the Treasury 
shall consolidate these reports as of the same date and submit to the 
Congress this consolidated report broken down by agencies, by coun- 



ts" !=!iibspction (c) wnf? added bv Sec. 301 fe) of tlip FA Act of 10GC. 

«5nbsprtion fd) wn^ pdded by Sec. 302 of tlio FAAct of 1969. 
soipor text, see page 284. 
.-i'L' 22 r s r. § 2:W.]. 

393 ^00. ^0^(c)(^i) of the FAAct of 1965 substituted "Accounting, Valuation, Report- 
ixo. .wn Adm-txistuatton of Foreign Cuurexcies'-' for "Accounting^ Valuation, and 
Rei'outing of Foreign Curencies". 



95 



tries, b}^ units of foreign currencies and their dollar equivalent. There- 
after, semiannually, similar reports are to be submitted by the agencies 
to the Treasury Department and then presented to the Congress by the 
Secretary of the Treasur}^^^* 

(d)^^^ In cases where assistance is to be furnished to any recipient 
comitry in furtherance of the purposes of this or any other Act on a 
basis which will result in the accrual of foreign currency proceeds to 
the United States, the Secretary of the Treasury shall issue regulations 
requiring that agreements, in respect of such assistance, include pro- 
visions for the receipt of interest income on the foreign currency 
proceeds deposited in authorized depositiories : Provided^ That 
whenever the Secretary of State determines it not to be in the national 
interest to conclude arrangements for the receipt of interest income 
he may waive the requirement thereof: Provided further^ That the 
Secretary of State, or his delegate, shall promptly make a complete 
report to the Congress on each such determination and the reasons 
therefor.^^^ 

Sec. 614.^^^ Special Authorities. — (a) The President may author- 
ize in each fiscal year the use of funds made available for use under 
this Act and the furnishing of assistance under section 506 in a total 
amount not to exceed $250,000,000 and the use of not to exceed 
$100,000,000 of foreign currencies accruing under this Act or any 
other law without regard to the requirements of this Act,^^^ any law 
relating to receipts and credits accruing to the United States, any 
Act appropriating funds for use under this Act, or the ]\Iutual Defense 
Assistance Control Act of 1951 (22 U.S.C. 1611 et seq.), in further- 
ance of any of the purposes of such Acts, when the President deter- 
mines that such authorization is important to the security of the 
United States. Not more than $50,000,000 of the funds available under 
this subsection may be allocated to any one country in any fiscal year. 
The limitation contained in the preceding sentence shall not apply 
to am^ country which is a victim of active Communist or Communist- 
supported aggression.'*°^ The authority of this section shall not be used 
to waive the limitations on transfers contained in section 610(a) of 
this Act.*o2 

(b) Whenever the President determines it to be important to the 
national interest, he may use funds available for the purposes of 
chapter 4 of part I in order to meet the responsibilities or objectives 
of the United States in Germany, including West Berlin, and without 
regard to such provisions of law as he determines should be disre- 
garded to achieve this purpose. 

(c) The President is authorized to use amounts not to exceed 
S50,000,000 of the funds made available under this Act pursuant to 
his certification that it is inadvisable to specify the nature of the use 

3»* For other reports required to be submitted to Congress, see Reports to Congress, Index. 

Subsection (d) was added by Sec. 301(c) (2) of the FA Act of 1965. 
390 For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

22 U.S.C. § 2.^R4. 
3^ Sec. 301(e) of the FAAct of 19(?7 substituted "506" for "510". 
!;>.^5"*.^^^ 201(c) and 251 (c), 610 (b), 620, (f), (i), and (k) of this Act. 

^n' V}^ ^^^^ sentences was added by Sec. 301 (f ) of the FAAct of 190G. 
Tins sentence was added by See. 19(b) of the FAAct of 1974. 



65-998—76- 



96 



of such funds, which certification shall be deemed to be a sufficient 
voucher for such amounts.^^^ The President shall promptly and fully 
inform the Speaker of the House of Kepresentatives and the chairman 
and ranking minority member of the Committee on Foreign Relations 
of the Senate of each use of funds under this subsection.*"^ 

Sec. 615.*°^ Contract Authority. — ProAasions of this Act authoriz- 
ing the appropriation of funds shall be construed to authorize the 
granting in any appropriation Act of authority to enter into contracts, 
within the amounts so authorized to be appropriated, creating obliga- 
tions in advance of a])propriations. 

Sec. 616.*"^ Availability of Funds. — Except as otherwise provided 
in this Act, funds shall be available to carry out the provisions of this 
Act as authorized and appropriated to the President each fiscal year. 

Sec. GIT."^"^ Termination of Assistance. — Assistance under any 
provision of this Act may, unless sooner terminated by the President, 
be terminated by concurrent resolution. Funds made available under 
this Act shall remain available for a period not to exceed eight 
months from the date of termination of assistance under this Act for 
the necesary expenses of winding up programs related thereto. 

Sec. 618.*°^ Use of Settlement Receipts.— United States dollars 
directly paid to the United States under the Agreement Between the 
United States of America and Japan Regarding the Settlement of 
Postwar Economic Assistance to Japan ^^^^ may be appropriated or 
otherwise made available to the President in any appropriation Act, 
within the limitations of part I of this Act, to carry out the provisions 
of that part. 

Sec. 619.*^^ Assistance to Newly Independent Countries.— 
Assistance under part I of this Act to newly independent countries 
shall, to the maximum extent appropriate in the circumstances of each 
case, be furnished through multilateral organizations or in accordance 
with multilateral plans, on a fair and equitable basis with due regard 
to self-help. 

Sec. 620.^^2 Prohibitions Against Furnishing Assistanee.*^^ — 

(a) (1)*^* No assistance shall be furnished under this Act to the pres- 
ent government of Cuba ; nor shall any such assistance be furnished to 
any country which furnishes assistance to the present government of 
Cuba unless the President determines that such assistance is in the na- 
tional interest of the United States.^^^ As an additional means of im- 
plementing and carrying into effect the policy of the preceding sen- 

403 See also Sees. 624(d) (7) and 636(a) (8) of this Act. 

The last sentence was added by Sec. 30(p:) of the PAAct of 1966. For other reports 
required to be submitted to Congress, see Reports to Congress, Index. 

405 22 r.S.r'. § 2r!6.=). 

406 2*^ F S C § 2.366 
«7 22 U.'S.'C.' § 2367.' 

*o8 Sec. 14 of the FAAct of 1973 substituted the word "eight" in lieu of the word 

"tWPi vo". 

22 use § 2368. Sec. 301(c) of the FAAct of 1962 struck out former Sec. 618, which 
related to economic assistance to Latin America. 
4'OTIAS Document No. 5154. 
*ii 22 FSC § 2360. 
«2 22 use § 2370. 

«3 Sec. 30l'(d) (1) of the FAAct of 1965 substituted "Prohibitions Against Furnish- 
ing A.«siSTA\CE. — " for "Prohtbitions Agai.vst Furnishing Assistance to Cdba and 
Certain Other Cot-ntries. — But see Sees. 620(i) and 639 of this Act. 

«*Sec. 301(e)(1)(A) of the FAAct of 1063"lnserted "fl)" after subsection (a). 

"5 This sentence was amended by Sec. 301(d)(1) of the PAAct of 1962. It formerly read 
as follows "No assistance shall be furnished under this Act to the present government of 
Cuba." 



97 



teiice, the President is authorized to establish and maintain a total 
embargo upon all trade between the United States and Cuba. 

(2) Except as may be deem.ed necessary by the President in the 
interest of the United States, no assistance "^shall be furnished under 
this Act to any government of Cuba, nor shall Cuba be entitled to 
receive any quota authorizing the importation of Cuban sugar into the 
United States or to receive any other benefit under any law of the 
United States, until the President detenrlnes that such government 
has taken appropriate steps according to international law standards 
to return to United States citizens, and to entities not less than 50 per 
centum beneficially owned by United States citizens, or to provide 
equitable compensation to such citizens and entities for property taken 
from such citizens and entities on or after January 1, 1959, by the 
Government of Cuba. 

(3) Xo fmids authorized to be made available under this Act 
(except under section 214) shall be used to furnish assistance to any 
country which has failed to take appropriate steps, not later than 60 
davs after the date of enactmeiit of the Foreign Assistance Act of 
1963— 

(A) to prevent ships or aircraft under its registry from trans- 
porting to Cuba (other than to United States installations in 
Cuba) — 

(i) any items of economic assistance, 

(ii) any items which are, for the purposes of title I 
of the Mutual Defense Assistance Control Act of 1951, as 
amended. arms, ammunition, and implements of war, 
atomic energy materials, petroleum, transportation materials 
of strategic value, or item^s of primary strategic significance 
used in the production of arms, ammunition, and implements 
of war, or 

(iii) any other equipment, materials, or commodities, so 
long as Cuba is governed by the Castro regime ; and 

(B) to prevent ships or aircraft under its registry from trans- 
porting any equipment, materials, or commodities from Cuba 
(other than from United States installations in Cuba) so long as 
Cuba is governed by the Castro regime. 

(b) Xo assistance shall be furnished under this Act to the govern- 
ment of any country unless the President determines that such country 
is not dominated or controlled by the international Comimunist 
movement. 

(c) *^^ Xo assistance shall be provided under this Act to the govern- 
ment of any country which is indebted to any United States citizen or 
person for goods or services furnished or ordered where (i) such 
citizen or person has exhausted available legal remedies, which shall 
include arbitration, or (ii) the debt is not denied or contested by such 
government, or (iii) such indebtedness arises under an unconditional 
guaranty of payment given by such government, or any predecessor 

*i« Para?raphs (2) and (3) were added by Sec. 301(e)(1)(B) of the FAAct of 1963. 
For text, see page 215. 

Subsection (c) was amended by Sec. 301(d) (2) of the FAAct of 1962. It formerly read 
as follows : 

"(c) No assistance shall be provided under this Act to the government of any country 
which IS indebted to any Ignited States citizen for goods or services furnished, where such 
citizen has exhausted available legal remedies and the debt is not denied or contested by 
8uch government." 



9S 



government, directly or indirect]}-, tlirongli any controlled entity: 
Provided, That tlie President does not find such action contrary to the 
national security. ^ . ^ • * ^ 

(d) Xo assistance shall be furnished under section 201 of this Act 
for construction or o])eration of any productive enterprise in any 
country where such enterprise will compete with United States enter- 
prise unless such country has agreed that it will establish appropriate 
procedures to prevent the exportation for use or consum.ption m the 
United States of more than 20 per centum of the annual production of 
such facility during the life of the loan. In case of failure to^ imple- 
ment such agreement by the other contracting party, the President is 
authorized to establish necessary import controls to effectuate the 
ao-reement. The restrictions imposed by or pursuant to this subsection 
may be waived by the President where he determines that such waiver 
is in the national security interest. 

(e) ^^^(1) The President shall suspend assistance to the govern- 
ment of any country to which assistance is provided under this or any 
other Act when the government of such country or any government 
agency or subdivision within such country on or after January 1, 

1962— . ^ 

(A) has nationalized or expropriated or seized ownership or 
control of property owned by any United States citizen or by any 
corporation, partnership, or' association not less than 50 per cen- 
tum beneficially owned by United States citizens, or 

(B) '-^ has taken steps to repudiate or nullify existing contracts 
or agreements with any United States citizen or any corporation, 
partnership, or association not less than 50 per centum beneficially 
owned by United States citizens, or 

(C) has imposed or enforced discriminatory taxes or other 
exactions, or restrictive maintenance or operational conditions, or 
has taken other actions, which have the effect of nationalizing, 
expropriating, or otherwise seizing ownership or control of prop- 
erty so owned, 

and such country, government agency, or government subdivision fails 
within a reasonable time (not more than six months after such action, 
or, in the event of a referral to the Foreign Claims Settlement Com- 

«9 Subsection (e) was added by Sec. 301(d)(3) of the FAAct of 1962 and was amended 
by Sec. 301(e)(2) of tlie FAAct of 1963 and by Sees. 301(d) (1) and (2) of the FAAct of 
1964. As orieinaTiv enacted. It rend as follow; : 

"(e) The President shall suspend assistance to the government of any country to wiiich 
as.'^isrance is provided under tliis Act when the {jovernnient of such country or any govern- 
mental agency or subdivision within such country on or after January 1. 1962 — 

"(1) has nationalized or expropriated or seized ownership or control of property 
owned by any United States citizen or by any corporation, partnership, or association 
not less'thaii 50 per centum beneficially owned by the United States citizens, or ., 

"(2) has imposed or enforced discriminn tory taxes or other exactions, or restrictive 
maintenance or operational conditions, which have the elfect of nationalizing, expro- 
priating, or otherv. ise seizing ownership or control of propert.v so ov/n^d. 
and such country, government agency or government subdivision fails within a reasonable 
time (not more than six months after such action or after the datf^ of ennr-rijionr of fliis 
subsection, whichever is later) to take appropriate steps, which may include arbitration, to 
discharge its obligations under international law toward sur-h cirizpn or putity. inr-Iiuling 
equitable and speedy compensation for such property in convertible foreign excliange. as 
required by international law. or fails to take steps desisrned to provide relief from snr-li 
taxes, exactions, or conditions, as the case may be. and such suspension shall continue until 
he is satisfied that appropriate steps are being taken and no other provision of this .\ct 
shall be construed to authorize the President to waive the provisions of this subsection." 
Parairraph designation "H)" wns ndded bv .«;pc. ."^OKflwit of the F.V.Act of 1964 
42i?:ec. .^;01(d)(2) of the FAAct of 1964 redesignated subparagraphs (1), (2), and (3) 
as subparagraphs (A),i(E), and (C), respectively. 



99 



mission of the United States within such period as provided herein, 
not more than twenty days after the report of the Commission is 
received) to take appropriate steps, which may inchide arbitration, to 
discharge its obligations under international law toward such citizen 
or entity, including speedy compensation for such property in con- 
vertible foreign exchange, equivalent to the full value thereof, as 
required by international law, or fails to take steps designed to provide 
relief from such taxes, exactions, or conditions, as the case may be ; and 
such suspension shall continue until the President is satisfied that ap- 
propriate steps are being taken, and the provisons of this subsection 
shall not be waived with respect to any country unless the President 
determines and certifies that such a waiver is important to the national 
interests of the United States. Such certification shall be reported im- 
mediately to Congress.^" 

Upon request of the President (witliin seventy days after such 
action referred to in subparagraphs (A), (B), or (C) of paragraph 
(1) of this section), the Foreign Claims Settlement Commission 
of the United States (establislied pursuant to Reorganization Plan 
Xo. 1 of 1954, 08 Stat. 1279) is hereby authorized to evaluate expro- 
priated property, determ.ining the full value of any property national- 
ized, expropriated, or seized, or subject to discriminatory or other 
actions as aforesaid, for purposes of this subsection and to render an 
advisory report to the President within ninety days after such re- 
quest. Unless authorized by the President, the Commission shall not 
publish its advisory report except to the citizen or entity owning such 
property. There is hereby authorized to be appropriated such amount, 
to remain available until expended, as may be necessary from time to 
time to enable the Commission to carry out expeditiously its functions 
under this subsection."*-^ 

(2) ^-^ Notwithstanding any other provision of law. no court in the 
United States shall decline on the ground of the federal act of state 
doctrine to make a determination on the merits giving effect to the 
principles of international law in a case in which claim of title or 
other right to property --^ is asserted by any party including a foreign 
state (or a party claiming thi'ough such state) based upvon (or traced 
through) a confiscation or other taking after January 1, 1059, by an 
act of that state in violation of the principles of international law, 
including the principles of compensation and the other standards set 
out in this subsection : Provided, That this subparagraph shall not be 
applicable (1) in any case in which an act of a foreign state is not 
contrary to international law or with respect to a claim of title or 
other right to property acquired pursuant to an irrevocal^le letter of 
credit of not more than ISO days duration issued in good faith prior 
to the time of the confiscation or other taking, oi* (2) in any case with 
respect to which the President determines that ap]:>lication of the act of 
state doctrine is required in that particular case by the foreign policy 

The words to tliis point, beginninjr with "the provisions of this subsection * * *" were 
STihstitnted in lien of ''no otlier nrovisinn of tliis Act shall he construpd to anthorize the 
President to waive the provisions of this subsection." bv Sec. 15 of the FAAct of 1973. 

*23Sec. .301fd)(3) of the FAAct of 1904 substituted the words "subparagraphs (A), (B), 
or iQ's of paragraph (1)" for the words "parasraphs (1). (21. or CSV. 

No funds were appropriated for this purpose in the FA Apnronriation Act, 1974. 
Paragraph (2) was added by Sec. 301 fd) (4) of the FAAct of 1904. 
<^ Sec. 301(d) (2) of the FAAct of 1965 inserted the words "to property". 



100 



interest? of the United States and a suggestion to this effect is filed on 
his behalf in that case with the court.*-" 

(f) >,o assistance shall be furnished under this Act, as amended, 
(except section 214(b)) to any Communist country. This restriction 
may not be waived pursuant to any authority contained in this Act 
unless the President finds and promptly reports to Congress that : (1) 
such assistance is vital to the security of the United States; (2) the 
recipient country is not controlled by the international Communist 
conspiracy; and (3) such assistance will further promote the inde- 
pendence of the recipient country from international communisni.*^^ 
For the purposes of this subsection, the phrase "Communist country'^ 
shall include specifically, but not be limited to, the following countries : 

Peoples Republic of Albania, 

Peoples Republic of Bulgaria, 

Peoples Republic of China, 

Czechoslovak Socialist Republic, 

German Dem.ocratic Republic (East Germany) , 

Estonia, 

Hungarian Peoples Republic, 

Latvia, 
Lithuania, 

North Korean Peoples Republic, 
North Vietnam, 

Outer ]\Iongolia-]^.Iongolian Peoples Republic, 
Polish Peoples Republic. 
Rumanian Peoples Republic, 
Tibet, 

Federal Peoples Republic of Yugoslavia, 
Cuba, and 

Union of Soviet Socialist Republics (including its captive con- 
stituent re;)ublics) 

(g) Notwithstanding any other ]:)rovision of law. no monetary 
assistance shall be m.ade available under this Act to any government 
or political subdivision or agency of such government which will be 
used to compensate owners for expropriated or nationalized property 
and, upon finding by the President that such assistance has been used 
by any government for such purpose, no further assistance under this 
Xct shall be furnished to such government until appropriate reim- 
bursement is made to the United States for sums so diverted. 

(h) The President sliall adopt regulations and established pro- 
cedures to insure that United States foreign aid is not used in a m.an- 
ner which, contrary to the best interests of the United States, promotes 
or assists the foreign aid projects or activities of the Communist-bloc 
countries. 

(i) ]vTq assistance shall be provided under this or any other Act, 
and no sales shall be made under the Agricultural Trade Developm.ent 

The words ", or (3"^ in arr case in which tho proce^^dings are commenced after 
January 1. 1966", which appeared at this point, were struck out by Sec. 301(d) (2) of the 
FAAct of 1965. 

Subsection (f) was added by Sec. 301(d) (3) of the FAAct of 1962 . 
420 por other reports required to be submitted to Congress, see Eeports to Congress, 
Index. 

The parenthetical phrase was added by Sec. 301(e) of the FAAct of 1964. 
*3i Subsections (g) and (h) were added by Sec. 301(d)(3) of the FAAct of 1962. 
*3a Subsection (i) was added by Sec. 301(e) (3) of the FAAct of 1963. 



101 



and Assistance Act of 1954,^3^ to any country whicli the President de- 
termines is engaging in or preparing for aggressive military efforts, or 
which hereafter is officially represented at any international confer- 
ence when that representation includes the planning of activities in- 
volving insurrection or subversion, which military efforts, insurrec- 
tion, or subversion, are directed against — 

(1) the United States, 

(2) any country receiving assistance under this or any other 
Act, or 

(3) any country to which sales are made under the Agricultural 

Trade Development and Assistance Act of 1954:,'^^^ 
until the President determines that such military efforts or prepara- 
tions have ceased, or such representation has ceased, and he reports to 
the Congress tliat he has received assurances satisfactory to him that 
such military efforts or preparations will not be renewed, or that such 
representation will not be renewed or repeated.'*^^ This restriccion 
may not be waived pursuant to any authority contained in this Act. 

( j) The President shall consider terminating assistance under this 
or any other Act to any country whicli permits, or fails to take ade- 
quate measures to prevent, the damage or destruction by mob action 
of United States property within su(^li countiy. and fails to take ap- 
propriate measures to prevent a recurrence thereof and to provide 
adequate compensation for such damage or destrtiction. 

(k) Vritiiout the express approval of Congress, no assistance shall 
be furnished under this Act to any country for construction of any 
productive enterprise with respect to which the aggregate value of 
assistance to l>e furnished by the United States will exceed $100,000,- 
000. Except as otherwise j)rovided in sc^ction 506.^-^ no military assist- 
ance shall be furnished to any country under this Act for carrying 
out any program, with respect to which the aggregate value of assist- 
ance to be fur]iished beginning July 1. 1966, by the Urxited States will 
exceed $100,000,000 unless such program has been incltided in the pres- 

«3 For text, see pape 2S4. 
^For text, see pa, ere 284. 

*35The first sentence of subsection (i) was amended by Sec. 301(h)(1) of the FAAct of 
1966. It formerly read as follows : 

"(i) No assistance shall be provided under this or any other Act, and no sales shall be 
made under the Agricultural Trade Development and Assistance Act of 19.54. to any 
country which the President determines is engaging in or preparing for aggressive military 
efforts directed against — 

"(1) the United States 

"(2^ any country receivins assistance under this or any other Act. or 
"(3) any country to which sales are made under the Agricultural Trade Develop- 
ment p.nd Assistance Act of ]9.'4. 
until the President determines that such military efforts or preparations have ceased and 
he reports to the Congress that he has received assurances satisfactory to him that such 
military efforts or preparations will not be renewed." 

For other reports-required to be submitted to Congress, see Reports to Congress. Index. 

"8 Subsection (j). which was added bv Sec. 301 fe) (3) of the FAAct of 1963, was amended 
by See. 301(f) (1) of the F.AAct of 1967. It formerly read as follows : "No assistance under 
this Act shall be furnished to Indonesia unless the President determines that the furiii-<hing 
of such assistance is essential to the national interest of the United States. The Pre.^ident 
shall keep the Foreign Relations Committee and the Appropriations Committee of the 
Senate and the Spealcer of the House of Representatives fully and currently informed of 
any assistance furnished to Indonesia under this Act." 

*^ Subsection (kK which was added bv Sec. 301(e)(3) of the FAAct of 1963. was 
amended by Sec. 301(h) (2) of the FAAct of 1966. It formerly read as follows : 

"(k) Until the enactment of the Foreign Assistance Act of 1065 or other general legisla- 
tion, during the calendar year 1965, authorizing additional appropriations to carry out 
programs of assistance under this Act, no assistance shall be furnished under this Act to 
any country for construction of anv productive enterprise with respect to which the ag- 
gregate value of such assistance to' be furnished by the United States will exceed $100.- 
000.000. No other provision of this Act shall be construed to authorize the President to 
waive the provisions of this subsection. 

«8 Sec. 301(f) (2) of the FAAct of 1967 substituted "506" for "510". 



102 



entation to the Congress during its consideration of authorizations for 
appropriations under this Act or of appropriations pursuant to au- 
thorizations contained in this Act. No provision of this or any other 
Act shall be construed to authorize the President to waive the provi- 
sions of this subsection. 

(1) The President shall consider denying assistance under this 
Act to the government of any less developed country which, after De- 
cember 31, 1966, has failed to enter into an agreement with the Presi- 
dent to institute the investment g-uaranty program under section 
221(b)(1) of this Act, providing protection against the specific 
risks of inconvertibility under subparagraph (A), and expropriation 
or confiscation under subparagraph (B), of such section 222(b) (l).^**' 

(m) No assistance shall be furnished on a grant basis under this 
Act to any economically developed nation capable of sustaining its 
own defense burden and economic growth, except (1) to fulfill firm 
commitments made prior to July 1, 1963, or (2) additional orientation 
and training expenses under part II hereof during each fiscal year 
in amount not to exceed $500,000.^*2 

(n) No loans, credits, guaranties, or grants or other assistance 
shall be furnished under this or any other Act, and no sales shall be 
made under the Agricultural Trade Development and Assistance Act 
■of 1954, to any country which sells or furnishes to North Vietnam, 
or which permits ships or aircraft under its registry to transport to or 
from North Vietnam, any equipment, materials, or commodities, so 
long as the regime in North Vietnam gives support to hostilities in 
South Vietnam, unless th© President determines that such loans, 
credits, guaranties, grants, other assistance, or sales are in the national 
interest of the United States.*^^ 

(o) In determining whether or not to furnish assistailce under 
this Act, consideration shall be given to excluding from such assist- 
ance any country which hereafter seizes, or imposes any penalty or 



Subsection (1). which was adder! by Sec. 301(e)(3) of the FAAct of 1963, was 
amended hv Sec. 301(h) (3) of the FAAct nf 1936. It formerly read as follows : 

"(I) No assistance shall be provided under this Act after December 31, 1966. to the gov- 
ernment of any less developed country which has failed to enter into an agreement with 
the President to institute the investment ?:uar;inty program under section 221(b)(1) of 
this Act, providing protection against the specific risks of inconvertibility under subpara- 
graph (A), and expropriation or confiscation under subparagraph (B), of such section 
221(b)(1)." 

■•^o References in this section to section 221(b)(1) should be references to section 234 

■^1 Subsection (m) was added bv Sec. 301(e) (3) of the FAAct of 1963. 

Sec. 301 (g) of the FAAct of 1964 added the word "each" : struck out the figure "1964" 
which appeared after "fiscal year", and substituted ".SSOO.OOO" for "$1,000,000". 

Subsection (n). which was added bv Sec. .301(d)(4) of the FAAct of 196.'. and 
amended by Sec. 301(h) (4) of the FAAct of 1966. was further amended bv Sec. 301(f)(3) 
of the FAAct of 1967. Before amendment by the FAAct of 1967 it read as follows : 

"(n) In view of the agcrression of North Vietnam, no assistance shall be furnished under 
this Act to any country which has failed to take appropriate steps, not later than sixty 
days after the date of enactment of the Foreign Assistance Act of 1966 — 

"'(A) to prevent ships or aircraft under its registry from transporting to North 
Vietnam — 

"(i) any items of economic assistance. 

"(ii) any items which are. for the purposes of title 1 of the TMutual Defense As- 
sistance Control Act of 19.')1, as amended, arms, ammunition and implements of 
war. atomic enercry materials, petroleum, transportation mnterials of strategic 
value, or items of primary strategic significance used in the production of arms, 
ammunition, and implements of war. or 

"(iii) any other equipment, materials, or commodities; and 
"(B) to prevent ships or nircraft under its registry from transporting any equip- 
ment, materials, or commodities from North Vietnam." 
4n For text, see page 2R4. 

''^^ The words to this point, beginning with ", unless the President determinas * * were 
addpd bv Sf>c. 23 of the FAAct of 1974. 

<^ Subsection (o) was added by Sec. .301(d) (4) of the FAAct of 1965. 



103 



sanction against, any United States fishing vessel on account of its 
fishing activities in international waters. The provisions of this sub- 
section shall not be applicable in any case governed by internatioiial 
agreement to which the United States is a party, 
(p) 447 * * * [Kepealecl— 1974] 

(q) Xo assistance shall be furnished under this Act to any 
country which is in default, during a period in excess of six calendar 
months, in payment to the United States of principal or interest on 
any loan made to such countiy under tliis Act, unless such country 
meets its obligations under the loan or unless the President determines 
that assistance to such country is in the national interest and notifies 
the Speaker of the House of Eepresentatives and the Committee on 
Foreign Relations of the Senate of such determination.*^^ 

(r) ^'^^ Xo recipient of a loan made under the authority of this Act, 
any part of which is outstanding on or after the date of enactment 
of this subsection, shall be relieved of liabilit}^ for the repa^^ment of 
any part of the principal of or interest on such loan. 

(s) (1) In order to restrain arms races and proliferation of 
sophisticated weapons, and to ensure that resources intended for 
economic development are not diverted to military purposes, the 
President shall take into account before furnishing development 
loans, Alliance loans or supporting assistance to any country under 
this Act, and before making sales under the Agricultural Trade 
Development and Assistance Act of 1954, as amendedy: 

(A) the percentage of the recipient or purchasing countr^^'s 
budget which is devoted to military purposes ; 

(B) the degree to which the recipient or purchasing country is 
using its foreign exchange resources to to acquire military 
equipment; and 

(C) the amount spent by the recipient or purcliasing country 
for the purchase of sophisticated Aveapons systems, such as missile 
systems and jet aircraft for military purposes, from any country. 

(2) The President shall report annually to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of the 
Senate his actions in carrying out this p ro vision. "'-^'^ 

(t) Xo assistance shall be furnished under this oi- any other Act 
and no sales shall be made under the Agricultural Trade Development 



^^'^ Subsection (p). which related to assistance to the United Arab Republic, was re- 
pealed by Sec. 44 of the FAAct of 1974. 

«s Subsections fp). (q) and (r) were added by Sec. 301(h)(5) of the FAAct of 1966. 
See also P.L. 93-33?,. p. 228. 

*<9For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

Subsection (s), which was added by Sec. 301(f) (4) of the FAAct of 1967, was amended 
by Sec. 303(a) of the FAAct of 1969. It formerly read as follows : 

"(s) In furnishing development assistance under this Act, and in making sales under 
the Agricultural Trade Development and Assistance Act of 1954, as amended, the President 
shall take into account (1) the percentage of the recipient or purchasing country's 
budget which is devoted to military purposes, and (2) the degree to which the recipient 
or purchasing country is usiiig its foreign exchange resources to acquire military equipment. 
When the President finds that development assistance under this Act. or sales under the 
Agricultural Trade Development and Assistance Act of 1954, as amended, are being diverted 
to military expenditures, or a recipient or purchasing country is diverting its own re- 
sources to unnecessary military expenditures, to a degree which materially interferes 
with its development, the President shall terminate such assistance and sales until he is 
assured that such diversion will no longer take place. No other provision of this Act shall 
be construed to authorize the President to waive the provisions of this subsection." 

*^ For text, see page 286. 

*s2For other reports required to be submittted to Congress, see Reports to Congress, 
Index. 

Subsections (t) and (u) were added bv Sec. 301(f)(4) of the FAAct of 1967. 



104 



and Assistance Act of 1954,*^* in or to any country which has severed 
or hereafter severs diplomatic relations with the United States or 
with which the United States has severed or hereafter severs diplo- 
matic relations, unless (1) diplomatic relations have been resumed 
with such country and (2) agreements for the furnishins: of such 
assistance or the making of such sales, as the case may be, have been 
negotiated and entered into after the resumption of diplomatic rela- 
tions with such country. 

(u) In any decision to provide or continue to provide any pro- 
gram of assistance to any country under the Foreign Assistance Act of 
1961, as amended, there shall be taken into account the status of the 
country with respect to its dues, assessments, and other obligations to 
the United Nations; and Avhere such country is delinquent with respect 
to anv such obligations for the purposes of the first sentence of Article 
19 of the United Nations Charter, the President shall furnish the 
Committee on Foreign Relations of the Senate and the Speaker of 
the House of Representatives a report settinj]: forth the assurance given 
by the government of the country concerned of paying all of its 
arrearages and of placing its payments of such obligations on a cur- 
rent basis, or a full explanation of the unusual or exceptional circum- 
stances which render it economically incapable of giving such 
assurance.^^^ 

456 * * * [Repealed— 1974] 

(w) ^^"^ (1) All military, economic, or other assistance, all sales of 
defense articles and services (whether for cash or by credit, guaranty, 
or any other means), all sales of agricultural commodities (whether 
for cash, credit, or by other means), and all licenses with respect to 
the transportation of arms, ammunitions, and implements of war (in- 
cluding technical data relating thereto) to the Government of Pakistan 
under this or any other law shall be suspended on the date of enactment 
of this subsection. 

(2) The provisions of this subsection shall cease to apply when the 
President reports to the Congress that the Government of Pakistan is 
cooperating fully in allowing the situation in East Pakistan to return 
to reasonable stability and that refugees from East Pakistan in India 
have been allowed, to the extent feasible, to return to their homes and 
to reclaim their lands and properties.^^^ 

(3) Nothino" in this section shall apply to the provision of food and 
other humanitarian assistance which is coordinated, distributed, or 
monitored under international auspices. 

(x)(l)*^^ All military assistance, all sales of defense articles and 
services (whether for cash or by credit, guarant3\ or any other means) , 
and all licenses with respect to the transportation of arms, ammuni- 
tions, and implements of war (including technical data relating 
thereto) to the Government of Turkey, shall be suspended on the date 

431 poj. tpxt, see piise 284. 

455 For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

<=8 Subsection (v) was repealed by Sec. 24 of the FAAct of 1974. Former subsection 
(v) relating to assistance to Greece was added by Sec. .301 of the FAAct of 1971. 

*57 Subsection (w) was added by Sec. 301 of the FAAct of 1971. 

For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

22 use 2370. Subsection (x) was added by Sec. 22 of the FAAct of 1974. 



105 



of enactment of this subsection unless and until the President deter- 
mines and certifies to the Congress that the Government of Turkey is 
in compliance with the Foreign Assistance Act of 1961, the Foreign 
Military Sales Act,**'^ and any agreement entered into under such Acts, 
and that substantial progress toward agreement has been naade regard- 
ing military forces in Cyprus: Provided^ That the President is au- 
thorized to suspend the provisions of this section and such acts if he 
determines that such suspension will further negotiations for a peace- 
ful solution of the Cyprus conflict. Any such suspension shall be effec- 
tive only until February 5, 1975, and only if, during that time, Turkey 
shall observe the ceasefire and shall neither increase its forces on 
Cyprus nor transfer to Cyprus any U.S. supplied implements of war. 

Chapter 2 — Administrative Provisions 

See. 621.*^^ Exercise of Functions.^^- — (a) ^^-^ The President may 
exercise any functions conferred upon him by this Act through such 
agency or officer of the United States Government as he shall direct. 
The head of any such agency or such officer may from time to time 
promulgate such rules and regulations as may be necessary to carry 
out such functions, and may delegate authority to perfoim any such 
functions, including, if he shall so specify, the authority successively 
to redelegate any of such functions to any of his subordinates. In pro- 
viding technical assistance under this Act, the head of any such agency 
or such officer shall utilize, to the fullest extent practicable, goods and 
professional and other services from private enterprise on a contract 
basis. In such fields as education, health, housing, or agriculture, the 
facilities and resources of other Federal agencies shall be utilized when 
such facilities are particularly or uniquely suitable for technical assist- 
ance, are not competitive with private enterprise, and can be made 
available without interfering unduly with domestic programs.*^* 

463 President shall issue and enforce regulations determining 
the eligibility and any person to receive funds made available under 
this Act. A person may be suspended under such regulations for a 
temi)orary period pending the completion of an investigation and any 
resulting judicial or debarment proceedings, upon cause for belief 
that such person or an affiliate thereof probably has undertaken con- 
duct which constitutes a cause for debarment ; and, after an opi^or- 
tunity has been afforded to such person for a hearing, he may be de- 
barred for an additional period, not to exceed three years. Among 
the causes for debarment shall be (1) offering or accepting a bribe or 
other illegal payment or credit in connection with any transaction 
financed vv'ith funds made available under this Act; or (2) committing 
a fraud in the procurement or performance of any contract financed 

For text, see page 253. 
22 use § 2381. 

■^-See 302(a) of the FAAct of 1962 struck out subsection designation "(a)" and re- 
pealed subsections (b), (c), (d),and (e). 

rTlct^ 0^1908 "(a)" and subsection (b) were added by the Sec. 302(a) of the 

*^See 302(a) of the FAAct of 1963, substituted the last two sentences in lieu of a 
T^^fi^^i^i . ^^'^^ follows: "In providing technical assistance under this Act 

°^ education, health housing, or agriculture, or in other fields, the head of any 
such agency or such officer shall utilize, to the fullest extent practicable, the facilities and 
• ^^t agency or agencies with primary responsibilities for domestic 

programs in such nelds. 



106 



witli funds made available under this Act; or (3) acting in any other 
manner which shows a lack of integrity or honesty in connection with 
any transaction financed with funds made available under this Act. 
Eeinstatement of eligibility in each particular case shall be subject 
to such conditions as the President shall direct. Each person whose 
eligibility is denied or suspended under this subsection shall, upon 
request, "be entitled to a review of his eligibility not less often than 
once every two years. 

Sec. 621A.^^5 Strengthened Management Practices. — (a) The 
Congress believes that United States foreign aid funds could be uti- 
lized more effectively by the application of advanced management 
decisionmaking, information and analysis techniques such as systems 
analysis, automatic data processing, benefit-cost studies, and infor- 
mation retrieval. 

(b) To meet this need, the President shall establish a management 
system that includes: the definition of objectives and programs for 
United States foreign assistance ; the development of quantitative in- 
dicators of progress toward these objectives; the orderly consideration 
of alternative means for accomplishing such objectives ; and the adop- 
tion of methods for comparing actual results of programs and projects 
with those anticipated when they were undertaken. The system should 
provide information to the agency and to Congress that relates agency 
resources, expenditures, and budget projections to such objectives and 
results in order to assist in the evaluation of program performance, the 
review of budgetary requests, and the setting of program priorities. 

(c) The President shall report to the Congress annually on the 
specific steps that have been taken, including an evaluation of the 
progress that has been made toward the implementation of this 
section.^^^ 

Sec. 622.4«^ Coordination With Foreign Policy.— (a) N^othing 
contained in this Act shall be construed to infringe upon the powers or 
functions of the Secretary of State. 

(b) ^ The President shall prescribe appropriate procedures to assure 
coordination among representatives of the United States Government 
in each country, under the leadership of the Chief of the United States 
Diplomatic Mission. The Chief of the Diplomatic Mission shall make 
sure that recommendations of such representatives pertaining to mili- 
tary assistance (including civic action) programs -^^^ are coordinated 
with political and economic considerations, and his comments shall 
accompany such recommendations if he so desires. 

(c) Under the direction of the President, the Secretary of State 
shall be responsible for the continuous supervision and general direc- 
tion of economic assistance and military assistance "^^^ programs, in- 
cluding but not limited to determining whether there shall be a mili- 
tary assistance (including civic action) program for a country and 

«5 22 use § 2381a, Sec. 621 A was added by See. 302(b) of the FAAct of 1968. 

466 por other reports required to be submitted to Congress, see Reports to Congress, Index, 

"7 22 U.S.C. § 2382. 

Sec. ■302(a)(1) of the FAAct of 196G substituted "(including civic action) or sales 
programs" for "(including any civil action and sales progx-am)". Sec. 45(b)(1) of the 
Foreign Military Sales Act (Public Law 90-629) struck out "or sales" which appeared 
before the word "programs". 

Sec. 4o(b)(2) of the Foreign Military Sales Act (Public Law 90-629) struck ont the 
words "and sajes" which appeared before the word "programs", and struck out the words 
"or sales" which appeared before the word "program". 



107 



the value thereof, to the end that such programs are effectively in- 
tegrated both at home and abroad and the foreign policy of the United 
States is best served thereby/'^ 

Sec. 623.^^^ The Secretary of Defense. — (a) In the case of assist- 
ance under part II of this Act, the Secretary of Defense shall have 
primary responsibility for 

(1) the determination of military end-item requirements; 

(2) the procurement of military equipment in a manner which 
]3ermits its integration with service programs ; 

(3) the supervision of end-item use by the recipient countries; 

(4) the supervision of the training of foreign military 
personnel ; 

( 5 ) the movement and delivery of military end-items ; and 

(6) within the Department of Defense, the performance of any 
other functions with respect to the furnishmg of military 
assistance. 

(b) The establishment of priorities in the procurement, delivery, 
and allocation of military equipment shall be determined by the 
Secretar}^ of Defense. 

Sec. 624.*"- Statutory Officers. — (a) The President may appoint, 
by and with the advice and consent of the Senate, twelve ofiicers in the 
agency primarily responsible for administering part 1^ * * * [Re- 
pealed— 196-i] 

(1) * * * [Repealed— 1964] 

(2) * * * [Repealed— 1964] 

(o) * * * [Repeaed — 1964] '^"^ and in the selection of one of 
such persons due consideration shall be given to persons qualified 
as professional engineers, 
(b) Within the limitations established by subsection (a) of this 
section, the President may fix the rate of compensation, and may 
designate the title of, any officer appointed pursuant to the authority 
contained in that subsection. The President may also fix the order of 
succession among the officers provided for in subsection (a) of this 
section in the event of the absence, death, resignation, or disalDiJity of 



*'''With the exception of the changes noted in footnote 415, the words to this point, 
beglnninjj with "economic assistance and", were substituted for the words "the assistance 
proprams authorized by this Act. including but not limited to determining whether there 
shall he a military assistance program (including any civic action and sales program) for a 
country and the value thereof, to the end that such programs are effectively integrated both 
at home and abroad and the foreign policv of the United States is best served thereby," by 
Sec. 802 (a) (2) of the FAAct of 1966. 
22 IT.S.C. § 2883. 

*'^^22 U.S.C. § 2.3S4. 

That part of Sec. 624(a) to this point, beginning with the words "of whom — " was 
repealed by Sec. 305(42) of the Government Employees Salary Reform Act of 1964 (Public 
Law 88-426). The repealed part read as follows : 
* * * "of whom — 

"(1) one shall have the rank of an Under Secretary and shall be compensated at 
a rate not to exceed the rate authorized by law for any Under Secretary of an Execu- 
tive Department : 

"(2) one shall have the rank of a Deputy Under Secretary and shall be compeu- 
Fated at a rate not to exceed the rate authorized by law for any Deputy Under 
Secretary of an Executive Department ; and 

"(3) ten shall have the rank of Assistant Secretaries and shall be compensated at 
a rate not to exceed the rate authorized by law for any Assistant Secretary of an 
Executive Department.". 
"^Sec, 302(b)(1) of the FAAct of 1965 struck out the words "paragraph (3) of" 
•which appeared at this point, and also substituted "of one or more of said officers" for 
"of the officers provid'e<i for in paragraphs (1) and (2) of that subsection". 



108 



(c) Any person who was appointed by and ^Yith the advice and 
consent of the Senate, to any statutory position authorized by any pro- 
vision of law repealed by section 642(a) and who is serving in one of 
such positions at the time of transfer of functions pursuant to sub- 
sections (c) and (d) of section 621, may be appointed by the Presi- 
dent to a comparable position authorized by subsection (a) of this 
section on the date of the establishment of the agency primarily re- 
sponsible for administering part I, without further action by the 
Senate. 

(d) (1) In addition to the officers provided for in subsection (a) 
of this section, there shall be in the Department of State an officer with 
the title of "Inspector General, Foreign Assistance," who shall be ap- 
pointed by the President, by and with the advice and consent of the 
Senate. In addition, there shall be one Deputy Inspector General, For- 
eign Assistance, who shall be appointed by the President by and with 
the advice and consent of the Senate,-^^^ and two Assistant Inspector 
Generals, Foreign Assistance, who shall be appointed hj the Presi- 
dent, and such other personnel as may be required to carry out the func- 
tions vested in the Inspector General, Foreign Assistance, by this sub- 
section. Notwithstanding any other provisions of law, such of the 
personnel employed under the authority of section 533A of the Mutual 
Security Act of 1954, as amended, as the Inspector General Foreign 
Assistance, may designate, and such of the property, records and 
funds of the office established by such section 533A as the Ins])ector 
Genera], Foreign Assistance, ma}' deem necessary, may be transferred 
to the offi.ce of the Inspector General, Foreign Assistance.*^^ 

(2) The Inspector General, Foreign Assistance, shall report di- 
rectly to the Secretary of State, and shall have the following duties 
and responsibilities : 

(A) He shall arrange for, direct or conduct such review?, in- 
spections and audits of programs being conducted under part I of 
this Act (including the Overseas Private Investment Corpora- 
tion), and under part IV of the Foreign Assistance Act of 1969 
(the Inter- American Social Development Institute) and of the 
Peace Corps, and programs being conducted by the United States 
Government agencies under the Latin American Development Act, 

^■^ Sec. 302(b) of the FAAct of 1962 repealed subsection (d) and redesignated subsec- 
tion fe) as subsection "d". 

Delegation of Authority No. 128, 38 F.R. 23341, dated Aug 21, 1973 : 

Inspector General, Foreign Assistance 

delegation of authority 

Pursuant to the authority vested in me by section 4 of the Act of May 26. 1049. as 
amended (22 U.S.C. 2058), I hereby delegate to the Inspector General. Foreign Assistance 
the authority successively to redelegate any of the functions vested in the Department of 
State, and not heretofore reserved to the Secretary of State, by section 624(d) of the For- 
eign Assistance Act of 1961, as amended (22 U.S.C. 2384(d) ). 

This Delegation of Authority shall be effective August 29, 1973. 

Sec. 302(b) (4) of the FAAct of 1963 added the v;ords "who shall be appointed bv the 
President by and with the advice and consent of the Senate.". 

*'!^Sec. 305(53) of the Government Employees Salary Reform Act of 1964 (P.L 8^-426) 
repealed the last sentence of this section, which read as follows : "The Inspector General. 
Foreign Assistance, shall receive compensation at the rate of .*^20,000 annually; the Deputy 
Inspector General. Foreign Assistance, shall receive compensation at the rate of ?^20 000 
annually, and each Assistant Inspector General, Foreign Assistance, shall receive compen- 
sation at the rate of $19,000 annually." 

Sec 303(d) (52) of the Government Employees Salary Reform Act of 1964 established an 
o"""ono^^^^^Si^""^P^"^''^**"^ $27,000 for the Inspector General. Foreign Assistance and 
^ec. .^o.^fd) fo3) established an annual basic compensation of .*27,000 for the Deputy In- 
spector General, Foreign Assistance. 

c "^^^//.T°''i^xx.*^x.*A^^ P°^"*' beginning with "(including the Overseas", were added bv 
Sec. 304(1) of the FAAct of 1969. 



1 



109 



as aniendecl,*^^ as he considers necessary for the purpose of ascer- 
taining the efficiency and the economy of their administration, 
their consonance with the foreign policy of the United States, and 
the attainment of their objectives. 

(B) For the purpose of ascertaining the extent to which pro- 
grams being carried out under part ll of this Act and the Agri- 
cultural Trade Development and Assistance Act of 195-1, as 
amended.^^^ are in consonance with the foreign policy of the 
United States, are aiding in the attainment of the objectives of 
this Act, and are being carried out consistently with the respon- 
sibilities with respect thereto of the respective United States chiefs 
of missions and of the Secretary of State, as well as the efficiency 
and the economy witli which such responsibilities are discharged, 
he shall arrange for, direct or conduct such reviews, inspections 
and audits of programs under part II of this Act and the Agri- 
cultural Trade Development and Assistance Act of 1951:, as 
amended, as he considers necessary. 

(3) The Inspector General, Foreign Assistance, shall maintain 
continuous observation and review of programs with respect to which 
he has responsibilities under paragraph (2) of this subsection for the 
purpose of — 

(A) determining tlie extent to which such programs are in 
compliance with applicable laws and regulations; 

(B) making recommendations for tlie correction of deficiencies 
in, or for improving the organization, plans or procedures of, 
such progi'ams ; and 

(C) evaluating the effectiveness of such programs in attaining 
United States foreign policy objectives and reporting to the 
Secretary of State with respect thereto. 

(4) In order to eliminate duplication and to assure full utilization 
of existing data, the Inspector General, Foreign Assistance, shall in 
carrying out his duties under this Act, give due regard to the audit, 
investigative and inspection activities of the various agencies, includ- 
ing those of the General Accounting Office and of the military- 
Inspectors General. 

(5) For the purpose of aiding in carrying out his duties under this 
Act, the Inspector General, Foreign Assistance, shall have access to 
all records, reports, audits, reviews, documents, papers, recommenda- 
tions, or other material of the agencies of the United States Govern- 
ment administering part I or II of this Act and the Latin American 
Development Act, as amended,*^^ the Peace Corps or the Agricultural 
Trade Development and Assistance Act of 1954, as amended, and pait 
IV of the Foreign Assistance Act of 1969.^^'^ All agencies of the United 
States Government shall cooperate with the Inspector General, 

*'8The words ", and programs being conducted by United States Government agencies 
under Public Law 86-735," were added by Sec. 302(b) of the FAAct of 1962. Sec. 302(b) (2) 
of the FAAct of 196.0 substituted "the Latin American Development Act, as amended" for 
"Public Law 86-735". For the text of Latin American Development Act, as amended, 
see page 206. 

480 The words "of assistance" which appeared at this point were struck out by Sec. 
302(a) of the FAAct of 1967. 
For text, see page 284. 

Sec. 302(bM2) of th« FAAct of 1965 substituted "the Latin American Development 
Act, ns amended" for "Public Law 86-735." 

483 The words "and part IV of the Foreign Assistance Act of 1969" were added by 
Sec. 304(2) of the FAAct of 1969. For text of part IV, see page 172. 



110 



Foreign Assistance, and shall furnisli assistance upon request to the 
Inspector General, Foreign Assistance, in aid of his responsibilities. 

(6) The Inspector General, Foreign iVssistance, shall have authority 
to suspend all or any part of any project or operation (but not a coun- 
try program) with respect to which he has conducted or is conducting 
an inspection, audit or review provided he first has given written 
notice to the Secretary of State. Any such suspension shall remain 
effective until such program or part thereof is ordered resumed by the 
Inspector General, Foreign Assistance, or by the Secretary of State. 
This paragraph shall not apply to part II of this Act, and with respect 
to the Agricultural Trade Development and Assistance Act of 1954, 
as amended, shall apply only to projects and operations administered 
by the Secretary of State. 

(7) Expenses of the Inspector General, Foreign Assistance, with 
respect to programs under part I or II of this Act, and part IV of the, ' 
Foreign Assistance Act of 19G9,^®^ and the Latin American Develop- 
ment Act, as amended,*^^ and the Peace Corps shall be charged to the 
appropriations made to carry out such programs, and with respect to 
programs under the Agricultural Trade Development and Assistance 
Act of 1954, as amended, shall be charged to funds available under the 
arithority of this Act : Provided^ That such appropriations shall not 
be charged with such expenses after the expiration of a thirty-five day 
period which begins on the date the General Accounting Office, or any , 
committee of the Congress, or any duly autliorizecl subcommittee 
thereof, charged with considering legislation, appropriations, or ex- 
penditures under the Act, has delivered to the Office of the Secretary ' 
of State a written request that it be furnished any document, paper, jj 
communication, audit, review, finding, recommendation, report, or j 
other material which relates to the operation or activities of the In- ! 
spector General, Foreign Assistance, unless and until there has been 
furnished to the General Accounting Office, or to such committee, or 
subcommittee, as the case may be, (A) the document, paper, communi- j 
cation, audit, review, finding, recommendation, report, or other mate- |i 
rial so requested, or (B) a certification by the President personally that j 
he has forbidden the furnishing thereof pursuant to such request and \ 
his reason for so cloing.*^^ The waiver authority in section 614(a) of \ 
this Act and the provisions of section 634 (c) of this Act shall not apply ! 
to this subsection. Such expenses shall not exceed $2,000,000 in any 
fiscal year. The Inspector General, Foreign Assistance, may make ex- 
penditures (not in excess of $2,000 in any fiscal year) of a confidential 
nature when he finds that such expenditures are in aid of inspections, 
audits, or reviews under this subsection. A certificate of the amount 
of each such expenditure, the nature of which it is considered inad- | 
visable to specify, shall be made by the Inspector General, Foreign ' 
Assistance, and every such certificate shall be deemed a sufficient ^ 
voucher for the amount therein specified.*^^ 

(8) Whenever the Inspector General, Foreign Assistance, deems 
it appropriate in carrying out his duties under this Act, he may from 



'•s* The words "and part IV of the Foreign Assistance Act of 1969," were added by 
Sec. 304(3) of the FAAct of 1969. For text of Dart IV, see page 172. 

"8" See also See. 634(c) of this Act and Sec. 502 of the FA Appropriations Act, 1975, 
page 201. 

See also Sec. 614(e) and Sec. 636(a) (S) of this Act. 
<87 Paragraph (8) was added by sec. 302(b) of the FAAct of 1966. 



Ill 



time to time notify the head of any agency primarily responsible for 
administering any program with respect to which the Inspector Gen- 
eral, Foreign Assistance, has responsibilities under paragraph (2) of 
this subsection that all internal audit, end-use inspection, and man- 
agement inspection reports submitted to the head of such agency or 
niission in the field in comiection with such program from any geo- 
graphic areas designated by the Inspector General, Foreign Assistance, 
shall be submitted simultaneously to the Inspector General, Foreign 
Assistance. The head of each such agency shall cooperate with the In- 
spector General, Foreign Assistance, in carrying out the provisions of 
this paragraph. 

(e) In addition to the officers otherwise provided for in this sec- 
tion, the President shall appoint, by and with the advice and consent 
of the Senate, one officer for purpose of coordinating security assist- 
ance programs. 

Sec. 625.^^° Employment of Personnel. — (a) Any agency or officer 
of the United States Government carrying out functions under this 
Act is authorized to employ such personnel as the President deems 
necessary to carry out the provisions and purposes of this Act. 

(b) Of the personnel employed in the United iStatcs to carr}^ out 
part I or coordinate part I and part II, not to exceed one hundred 
and ten "^^^ may be appointed, compensated or removed without regard 
to the ro visions of any law, of whom not to exceed fifty-one may be 
compensated at rates higher than those provided for grade 15 of the 
general schedule established by sectioji 5332 of title 5 of the United 
States Code,^^^ but not in excess of the highest rate of grade 18 of such 
general schedule : Provided^ That, under such regulations as the 
President shall prescribe, officers and employees of the United States 
Government who are appointed to any of the above positions may be 
entitled, upon removal from such position, to reinstatement to the 
position occupied at the time of apj^ointment or to a position of com- 
parable grade and salary. Such positions shall be in addition to those 
authorized by law to be filled by Presidential appointment, and in 
addition to the number authorized bv section 5108 of title 5 of the 
United States Code.^^^ 

(c) Of the personnel employed in the United States to carry out part 
II, or an}' Act superseding part II in vrhole or in part,^^* not to exceed 
eight may be compensated at rates hi<[:her than those provided for 
grade 15 of the general schedule established b}^ section 5332 of title 5 
of the United States Code,*^^ but not in excess of the highest rate of 



^-"^^ Subsection (e) was added by Sec. 302 of the FAAct of 1971. 
22 use § 23S."5. 

^soSec. 301(0) (1) of the FAAct of 1962 substituted "one hundred and ten" in lieu of 
"seventy-six". 

«i Sec. 302(bUl> of the FAAct of 1987 i^ub'Jtituted, "Section 5332 of title 5 of the 
United States Code" in lieu of "the Classification Act of 1949, as amended (5 U.S.C. 
1071 et seq.)". 

«2Sec. 1001 (k)(l) of the Postal Service and Federal Employees Salary Act of 1962 
(Public Law 87-793) substituted the words "but not in excess of the highest rate of 
grade IS of such general schedule" in lieu of "and of these, not to exceed eight may be 
compensated at a rate in excess of the highest rate provided for grades of such general 
schedule but not in excess of $19,000 per year". 

*93Sec. 302(b)(2) of the FAAct of 1967 substituted ".^108 of title 5 of the United 
States Code" in lieu of "505 of the Classification Act of 1949. as amended". 

The words "or anv Act superseding part II in whole or in part," were added by 
Sec. 302(c) of the FAAct of 1968. 

«5 Sec. 302(c) (1) of the TAAct of 1967 substituted "section 5332 of title 5 of the United 
States Code" in lieu of "the Classification Act of 1949, as amended". 



112 



grade 18 of such general schedule.^^^ Sucli positions shall be in addi- 
tion to those authorized by law to be filled by Presidential appoint- 
ment, and in addition to the number authorized by section 5108 of 
title 5 of the United States Code.^^^ 

(d) For the purpose of performing functions under this Act out- 
side the United States the President m.ay — 

(1) employ or assign persons, or authorize the employment or 
assignm.ent of officers or employees by agencies of the United 
States Government, who shall receive compensation at any of the 
rates provided for the Foreign Service Reserve and Staff by the 
Foreign Service Act of 1946, as amended (22 U.S.C. 801 et seq.) , 
together with allowances and benefits thereunder; and persons so 
employed or assigned shall be entitled, except to the extent that 
the President may specify otherwise in cases in which the period 
of employment or assignment exceeds thirty months, to the same 
benefits as are provided by section 528 of' that Act for persons 
appointed to the Foreign Service Reserve, and the provisions of 
section 1005 of that Act shall apply in the case of such persons, 
except that policy-making officials shall not be subject to that 
part of section 1005 of that Act which prohibits political tests ; and 

(2) utilize such authority, including authority to appoint and 
assign personnel for the duration of operations under this Act, 
contained in the Foreign Service Act of 1946, as amended, as the 
President deems necessar}^ to carry out functions under this Act ; 
and such provisions of the Foreign Service Act of 1946, as 
amended, as the President deems appropriate shall apply to per- 
sonnel appointed or assigned under this paragraph, including in 
all cases the provisions of section 528 of that Act : Provided^ how- 
ever^ That the President may by regulation make exceptions to 
the application of section 528 in cases in which the period of the 
appointment or assignment exceeds thirt;^ months : Provided fur- 
ther^ That Foreign Service Reserve officers appointed or assigned 
pursuant to this paragraph shall receive within-class salary in- 
creases in accordance with such regulations as the President may 
prescribe : Provided further. That, whenever the President deter- 
mines it to be important for the purposes of this Act, the President 
may initially assign personnel under this paragraph for duty 
within the United States for a period not to exceed two years for 
the purpose of preparation for assignmient outside the United 
States ; however, the authority contained in this proviso may not 
be exercised with respect to the assignment to such duty of more 
than fifty persons at any one time.^°° 

(e) The I*resident is authorized to prescribe by regulation stand- 
ards or other criteria for maintaining adequate performance levels for 

Sec. 1001 ''kW2) of the Postal Service and Federal Employees Salary Act of 1962 
(Public Law 87-793) substituted the words "but not in excess of the highest rate of 
grade 18 of such general schedule" in lien of '"and of these, not to exceed three may be 
compensated at a rate in excess of the highest rate provided for grades of such general 
schedule but not in excess of ?;i9,000 per year". 

"97 Sec. 802(c) (2) of the FAAct of 1907 substituted "5108 of title 5 of the United States 
Code" in lieu of "50o of the Classification Act of 1949, as amended". 

498 Por text, see paee 423. 

Sec. 302(d) of the FAAct of 1967 substituted "fifty" in lieu of "forty". 

BOO The last proviso in this paragraph was added by Sec. 302(c) (2) of the FAAct of 1962. 
Sec. 302(a) (1) of the FAAct of 1964 substituted the words "the assignment to such duty 
of more than twenty persons at any one time" for the words "more than thirty persons in 
the aggregate". 



113 



personnel appointed or assigned pursuant to paragraph (2) of sub- 
section (d) of this section and section 527(c) (2) of the Mutual Se- 
curity Act of 1954, as amended, and may, notwithstanding any other 
law, but subject to an appropriate administrative appeal, separate 
employees who fail to meet such standards or other criteria, and also 
may grant such personnel severance benefits of one month's salary for 
each year's service, but not to exceed one year's salary at the then 
current salary rate of such personnel. 

(f ) Funds provided for in agreements with foreign counties for the 
furnishing of services under this Act with respect to specific projects 
shall be deemed to be obligated for the services of personnel employed 
by agencies of the United States Government (other than the agencies 
primarily responsible for administering part I or part II of this Act) 
as well as personnel not employed b}' the United States Government.^^^ 

(g) The principles regarding foreign language competence set forth 
in section 578 of the Foreign Service Act of 1946, as amended (22 
U.S.C. 801), shall be applicable to personnel carrying out functions 
under this Act and the Secretary of State shall make appropriate 
designations and standards for such personnel. 

(h) Notwithstanding any other provision of law, officers and em- 
ployees of the United States Government performing functions under 
this Act shall not accept from any foreign country any compensation 
or other benefits. Arrangements may be made by the President with 
such countries for reimbursement to the United States Government or 
other sharing of the cost of performing such functions. 

(i) To the maximum extent practicable officers and employees per- 
forming functions under this Act abroad shall be assigned to countries 
and positions for which they have special competence, such as appro- 
priate language and practical experience. 

(j) The President may appoint or assign a United States citizen 
to be representative of the United States to the Inter- American Com- 
mittee on the Alliance for Progress and, in his discretion, may ter- 
minate such appointment or assignment, notwithstanding any other 
provision of law. Such person may be compensated at a rate not to 
exceed that authorized for a chief of mission, class 2, within the mean- 
ing of the Foreign Service Act of 1946, as amended.^°* 

(k) (1) In accordance with such regulations as the President may 
prescribe, the following categories of personnel who serve in the agency 
primarily responsible for administering part I of this Act shall become 
participants in the Foreign Service Retirement and Disability System : 

(A) persons serving under unlimited appointments in em- 
ployment subject to subsection (d) (2) of this section as Foreign 
Service Reserve officers and as Foreign Service staff officers and 
employees; and 

(B) a person serving in a position to which he was appointed 
by the President, whether with or without the advice and consent 
of the Senate, if (i) such person shall have served previously 

Sec. 625(f) was amended by Sec.(c)(3) of the FAAct of 1962. It formerly read as 
follows : '"Funds provided for in agreements with foreign countries for the furnishing of 
services under this Act shall be deemed to be obligated for the services of personnel em- 
ploved by the United States Government as well as other personnel". 
^2 For text, see page 423. 

^ Subsection (j) was added by Sec. 302(a) (2) of the FAAct of 1964. 
^* For text, see page 423. 

^ Subsection (k) was added by Sec. 16 of the FAAct of 1973. 



114 



under an unlimited appointment pursuant to such subsection 
(d) (2) or a comparable provision of predecessor legislation to 
this Act, and (ii) following service specified in clause (i) of this 
subparagraph, such person shall have served continuously with 
such agency or its predecessor agencies only in positions estab- 
lished under the authority of sections 624(a) and 631(b) or com- 
parable provisions of predecessor legislation to this Act. 

(2) Upon becoming a participant in the Foreign Service Retire- 
ment and Disability System any such officer or employee shall make 
a special contribution to the Foreign Service Retirement and Dis- 
ability Fund in accordance with the provisions of section 852 of the 
Foreign Service Act of 1946, as amended.^^^ Thereafter, compulsory 
contributions will be made with respect to each such participating 
officer or employee in accordance with the provisions of section 811 
of the Foreign Service Act of 1946, as amendecl.^^^ 

(3) The provisions of section 636 and title VIII of the Foreign 
Service Act of 1946, as amended,^^^ shall apply to participation in the 
Foreign Service Retirement and Disability System by any such officer 
or employee. 

(4) If an officer who becomes a participant in the Foreign Service 
Retirement and Disability System under paragraph (1) of this sub- 
section is appointed by the President, by and with the advice and 
consent of the Senate, or by the President alone, to a position in any 
ageiicy of the United States Government, any United States delega- 
tion or mision to any international organization, in any international 
commission, or in any international body, such officer shall not, by vir- 
tue of the acceptance of such an appointment, lose his status as a par- 
ticipant in the system. 

(5) Any such officer or employee who becomes a participant in the 
Foreign Service Retirement and Disability System under paragraph 
(1) of this subsection shall be mandatorily retired (A) at the end 
of the month in which he reaches age seventy, or (B) earlier if, during 
the third year after the effective date of this subsection, he attains 
age sixty-four or if he is over age sixty-four ; during the fourth year 
at age sixty-three ; during the fifth year at age sixty-two : during the 
sixth year at age sixty-one; and thereafter at the end of the month 
in which he reaches age sixty. However, no participant shall be man- 
datorily retired under this paragraph while serving in a position to 
which appointed by the President, by and with the advice and consent 
of the Senate. Any participant who completes a period of authorized 
service after reaching the mandatory retirement age specified in this 
paragraph shall be retired at the end of the month in which such 
service is completed. 

(6) Wlienever the President deems it to be in the public interest, he 
may extend any participant's service for a period not to exceed five 
years after the mandatory retirement date of such officer or employee. 

(7) This subsection shall become effective on the first day of the first 
month which begins more than one year after the date of its enactment, 
except that any officer or employee who, before such effective date, 



^« For text, see pajre 475. 
^ For text, see pape 4R7. 

^ For text, see pages 453 and 4G4, respectively. 



115 



meets the requirements for participation in the Foreign Service Retire- 
ment and Disability System under paragraph (1) of this subsection 
may elect to become a participant before the effective date of this sub- 
section. Such officer or employee shall become a participant on the first 
day of the second month following the date of his application for 
earlier participation. Any officer or employee who becomes a partici- 
pant in the system under the provisions of paragraph (1) of this sub- 
section, who is age fifty-seven or over on the effective date of this 
subsection, may retire voluntarily at any time before mandatory retire- 
ment under paragraph (5) of this subsection and receive retirement 
benefits under section 821 of the Foreign Service Act of 1946, as 
amended. ''^'^ 

(8) Any officer or employee who is separated for cause while a par- 
ticipant in the Foreign Service Retirement and Disability System 
pursuant to this subsection, shall be entitled to benefits in accordance 
with section 637 (b) and (d) of the Foreign Service Act of 1946, as 
amended.^^^ The provisions of subsection (e) of this section shall apply 
to participants in lieu of the provisions of sections 633 and 634 of the 
Foreign Service Act of 1946, as amended.^^^ 

Sec. 626.^^^ Experts, Consultants, and Retired Officers. — (a) Ex- 
perts and consultants or organizations thereof may, as authorized by 
section 3109 of title 5 of the United States Code,^^^ he employed for the 
performance of functions under this Act, and individuals so employed 
may be compensated at rates not in excess of $100 per diem, and 
while away from their homes or regular places of business, they may 
be paid actual travel expenses and per diem in lieu of subsistence at 
the applicable rate prescribed in the standardized Government travel 
regulations, as amended from time to time. Contracts for such employ- 
ment with such organizations, employment of personnel as experts and 
consultants, not to exceed ten in number, contracts for such employ- 
ment of retired military personnel with specialized research and de- 
velopment experience, not to exceed ten in number, and contracts for 
such employment of retired military personnel with specialized experi- 
ence of a broad politico-military nature, not to exceed five in number, 
may be renewed annually. 

(b)^^^ Service of an individual as an expert or consultant under sub- 
section (a) of this section shall not be considered as employment or 



^ For text, see page 467. 
510 por text, see page 454. 

For text, see page 452. 
51- 22 U.S.C. § 2386. 

Sec. 302(e) (1) of the FAAct of August 1967 substituted "3109 of title 5 of the United 
States Code" in lieu of "15 of the Act of August 2. 1946, as amended (5 U.S.C. 55a>". 
°" Sec. 302(b) (1) of the FAAct of 1964 substituted "$100" for "$75". 

Sec. 302(c) (1) of the FAAct of 1963 struck out the first sentence of this section since 
the subject matter therefore was superseded by P.L. 87-849. approved October 23, 1962. 
The first sentence formerly read as follows : "Service of an individual as an expert or 
consultant under subsection (a) of this section shall not be considered as sorvece or em- 
ployment brincring such individual within the provisions of section 281, 283, or 284 of 
title IS of the United States Code, or of section 190 of the Revised Statutes (5 U.S.C. 99), 
or of any other Federal law imposing restrictions, requirements, or penalties in relation 
to the employment of persons, the performance of services, or the payment or receipt of 
compensation in connection with any claim, proceeding, or matter involving the United 
States Government, except insofar as such provisions of hnv may prohibit any such indi- 
vidual from receiving compensation in respect of any particular matter in which such 
individual was directly involved in the performance of such service." 

The words "Service of an individual as an expert or consultant under subsection (a) 
of this section shall not" were substituted for the words "Nor shall such service" by Sec. 
302(c) (2) of the FAAct of 1903. 



116 



holding' of office or position bringing sucli individual within the pro- 
visions of sections 3323(a) and 8344 of title 5 of the United States 
Code, section 872 of the Foreign Service Act of 1946, as 

amended, or any other law limiting the reemployment of retired 
officers or employees or governing the simultaneous receipt of compen- 
sation and retired pay or annuities, subject to section 5532 of title 5 of 
the United States Code.^=° 

(c) ^-^ Persons of outstanding experience and ability may be em- 
ployed without compensation by any agency of the United States Gov- 
ernment for the performance of functions under this Act in accordance 
with the provisions of section 710 (b) of the Defense Production Act of 
1950, as amended (50 U.S.C. App. 2160(b)), and regulations issued 
thereunder. 

Sec. 627.^" Detail of Personnel to Foreign Governments. — 
Wlienever the President determines it to be in furtherance of the pur- 
poses of this Act, the head of any agency of the United States Govern- 
ment is authorized to detail or assign any officer or employee of his 
agency to any office or position with any foreign government or foreign 
government agency, where acceptance of such office or position does not 
involve the taking of an oath of allegiance to another government or 
the acceptance of compensation or other benefits from any foreign 
country by such officer or employee. 

Sec. 628.^^^ Detail of Personnel to International Organiza- 
tions. — ^Vlienever the President determines it to be consistent with 
and in furtherance of the purposes of this Act, the head of any agency 
of the United States Government is authorized to detail, assign, or 
otherwise make available to any international organization any officer 
or employee of his agency to serve with, or as a member of , the inter- 
national staff of such organization, or to render any technical, scien- 
tific, or professional advice or service to, or in cooperation with, such 
organization. 

Sec. 629»^-* Status of Personnel Detailed. — (a) Any officer or 
employee, while assigned or detailed under section 627 or 628 of this 
Act, shall be considered, for the purpose of preserving his allowances, 
privileges, rights, seniority, and other benefits as such, an officer or 
employee of the United States Government and of the agency of the 
United States Government from which detailed or assigned, and he 
shall continue to receive compensation, allowances, and benefits from 
funds appropriated to that agency or made available to that agency 
under this Act. 

(b) Anv officer or employee assigned, detailed, or appointed under 
section 627, 628, 631, or 624(d) of this Act is authorized to receive 



Pec. 802rp)('A) of the FAAot of 1967 siihstituted "pections 3328(a) and 8344 of 
titlo n of the rniterl States Code" for "section 13 of the Civil Service Retirenaent Act, as 
amended (5 U.S.C. 2203)". 

^''^ Sec. 401 (e) (CD of the Dual Compensation Act (P.L. S8-448), Ansnst 19. 19fi4. struck 
out the Tvords "section 212 of Public Law 72-212, as amended (5 U.S.C. 59a)," which ap- 
peared at this point. 

nio text, see Dage 479. 

f^-^Sec. 3n2(e)(B) of the FAAct of 1967, substituted "5532 of title 5 of the United 
Stntes Code" for "201 of the Dual Compensation Act". 

Sec. 302fd) of the FAAct of 19G5 redei^ifrnated subsection (d) as subsection (c). For- 
mer subsection (c). which related to emplovment of retired officers, was repealed by the 
DupI Compensation Act (Public Law 88-448), August 19, 1964. 
22 use § 2387. 
B23 22 use § 23S.S. 
2^ Vfir S 2389 

"-'5 Sec. 302(d) of the FAAct of 1962 substituted "624(d)" for "G24(e)". 



117 



under siicli regulations as the President may prescribe, representation 
allowances similar to those allowed under section 901 of the Foreign 
Service Act of 1946, as amended (22 U.S.C. 1131). The authoriza- 
tion of such allowances and other benefits and the payment thereof 
out of any appropriations available therefor shall be considered as 
meeting all the requirements of section 5536 of title 5 of the United 
States Code.^-^ 

Sec. 630.^2^ Terms of Detail or Assignment, — Details or assign- 
ments may be made under section 627 or 628 of this Act or section 408 
of the ]\Iutual Security Act of 1954, as amended — ^-^ 

(1) without reimbursement to the United States Government 
by the foreign government or international organization ; 

(2) upon agreement by the foreign government or interna- 
tional organization, to reimburse the United States Government 
for compensation, travel expenses, benefits,^^^ and allowances, or 
any part thereof, payable to the officer or employee concerned 
during the period of assignment or detail; and such reimburse- 
ments (including foreign currencies) shall be credited to the 
appropriation, fund, or account utilized for paying such compen- 
sation, travel expenses, benefits,^^° or allowances, or to the appro- 
priation, fund, or account currently available for sucli purposes; 

(3) upon an advance of funds, property, or services by the 
foreign government or international organization to the United 
States Government accepted with the approval of the President 
for specified uses in furtherance of the purposes of this Act ; and 
funds so advanced may be established as a separate fund in the 
Treasury of the United States Government, to be available for the 
specified uses, and to be used for reimbursement of appropriations 
or direct expenditure subject to the provisions of this Act, any 
unexpended balance of such account to be returned to the foreign 
government or international organization ; or 

(4) subject to the receipt by the United States Government of 
a credit to be applied against the payment by the United States 
Governm.ent of its share of the expenses of the international or- 
ganization to which the officer or employee is detailed or assigned, 
such credit to be based upon the compensations, travel expenses, 
benefits and allowances, or any part thereof, payable to such 
officer or employee durinor the period of detail or assignment in 
accordance with section 629. 

Sec. 631.^^^ Missions and Staffs Abroad. — (o) The President mav 
maintain special missions or staffs outside the United States in such 
countries and for such periods of time as may be necessary to carry 
out the purposes of this Act. Each such special mission or staff shall 
be under the direction of a chief. 

(b) The chief and his deputy of each special mission or staff carry- 
ing out the purposes of part I shall be appointed by the President, 
and may. notwithstanding any other law, be removed by the Presi- 
dent at his discretion. Such chief shall be entitled to receive (1) in 

For text, see najre 4S2. 

527 Sec. 302(f) of the FA Act of 1967 substituted "5536 of title 5 of the United States 
Cof=ie" in lien of "1765 of the Revised Statutes (5 U.S.C. 70)". 
^-8 22 use § 2390. 

529 p^j. f^^^ g^f. p^rrp 210. 

^The word "benefits" was added by Sec. 302(e) of the FAAct of 1965. 
^^22 U.S.C. § 2391. 



118 



cases approved by the President, the same compensation and allow- 
ances as a chief of mission, class 3, or a chief of mission, class 4, within 
the meaning of the Foreign Service Act of 1946, as amended,^^^ or (2) 
compensation and allowances in accordance with section 625(d), as 
the President shall determine to be appropriate. 

(c) The President may appoint any United States citizen who is 
not an employee of the United States Government or m.ay assign any 
United States citizen who is a United States Government employee to 
serve as Chairman of the Development Assistance Committee or any 
successor committee thereto of the Organization for Economic Coop- 
eration and Development upon election thereto by members of said 
Committee, and, in his discretion, may terminate such appointment or 
assignment, notwithstanding any other provision of law. Such person 
may receive such compensation and allowances as are authorized by 
the Foreign Service Act of 1946, as amended,^^- not to exceed those 
authorized for a chief of mission, class 2, within the meaning of said 
Act, as the President may determine. Such person may also, in the 
President's discretion, receive any other benefits and prerequisites 
available under this Act to chiefs of special missions or stalls outside 
the United States established under this section. 

(d) Wherever practicable, especiall}^ in the case of the smaller 
programs, assistance under this Act shall be administered under the 
direction of the Chief of the United States Diplomatic Mission by the 
principal economic oiTicer of the mission in the case of assistance under 
part I, and by the senior military officer of the mission in the case of 
assistance under part 11. 

Sec. 632.^35 Allocation and Reimbursement Among Agencies. — 
(a) The President may allocate or transfer to any agenc}^ of the 
United States Government any part of any funds available for car- 
rying out the purposes of this Act, including any advance to the 
United States Government by any country or international organiza- 
tion for the procurement of commodities, defense articles, or services 
(including defense services). Such funds shall be available for obli- 
gation and expenditure for the purposes for v/hich authorized, in ac- 
cordance Vvith authority granted in this Act or under authority gov- 
erning the activities of the agencies of the United States Government 
to which such funds are allocated or transferred. 

(b) Any officer of the United States Government carrying out f auc- 
tions under this Act may utilize the services (including defense serv- 
ices) and facilities of, or procure commodities and defense articles 
from, any agency of the United States Government as the President 
shall direct, or with the consent of the head of such agency, and funds 
allocated pursuant to this subsection to any such agency may be estab- 
lished in separate appropriation accounts on the books of the Treasury. 

(c) In the case of any commodity, service, or facility procured from 
any agency of the United States Government to carry out part I, reim- 
bursement or repayment shall be made to such agency from funds 
available to carry out such part. Such reimbursement or payment shall 
be at replacement cost, or, if required by law, at actual cost, or at any 



For text, see pape 423. 
5" Subsection (c) was added by Sec. 802(d) of FAAct of 1963. 
Subsection (d) was added by Sec. 302(f) of the FAAct of 1965. 
22 use § 2392. 



119 



other price authorized by law and agreed to by the owning or dispos- 
ing agenc}^ The amount of any such reimbursement or payment shall 
be credited to current applicable appropriations, funds, or accounts, 
from which there may be procured replacements of similar commodi- 
ties, services, or facilities, except that where such appropriations, 
funds, or accounts are not reimbursable except by reason of this sub- 
section, and when the owning or disposing agency determines that 
such replacement is not necessary, any funds received in payment there- 
for shall be deposited into the Treasury as miscellaneous receipts. 

(d) Except as otherwise provided in section 506,^^^ reimbursement 
shall be made to any United States Government agency, from funds 
available for use under part II, for any assistance furnished under 
part II from, by, or through such agency. Such reimbursement shall 
be in an amount equal to the value (as defined in section 644 (m) ) of 
the defense articles or of the defense services (other than salaries of 
members of the Armed Forces of the United States), or other assist- 
ance furnished, plus expenses arising from or incident to operations 
under part II. The amount of such reimbursement shall be credited to 
the current applicable appropriations, funds, or accounts of such 
agency. 

(e) In furnishing assistance under this Act. accounts may be estab- 
lished on the books of any agency of the United States Government 
or. on terms and conditions approved by the Secretary of the Treasury, 
in banking institutions in the United States, (1) against which letters 
of commitment may be issued which shall constitute recordable obli- 
gations of the United States Government, and moneys due or to be- 
come due under such letters of commitment shall be assignable under 
the Assignment of Claims Act of 1940, as amended (second and third 
paragraphs of 31 U.S.C. 203 and 41 (U.S.C. 15). and (2) from which 
disbursements may be made to, or withdrawals may be made by, 
recipient countries or agencies, organizations, or persons upon presen- 
tation of contracts, invoices, or other appropriate documentation. Ex- 
penditure of funds which have been made available through accounts 
so established shall be accounted for on standard documentation re- 
quired for expenditure of funds of the United States Government: 
Provided. That such expenditures for commodities, defense articles, 
services (including defense services), or facilities procured outside 
the United States may be accounted for exclusively on such certifica- 
tion as may be prescribed in regulations approved by the Comptroller 
General of the United States. 

(f ) Credits made by the Export-Import Bank of Washington with 
funds allocated thereto under subsection (a) of this section or under 
section 522 (a) of the Mutual Security Act of 1954, as amended, sluill 
not be considered in determining whether the Bank has outstanding 
at any one time loans and guaranties to the extent of the limitation 
imposed by section 7 of the Export-Import Bank Act of 1945,^^'^ as 
amended (12 U.S.C. 635e). 

(g) Any appropriation or account available to carrv out "orovisions 
of part I may initially be charged in any fiscal year, within the limit of 
available funds, to finance expenses for which funds are available in 

538 Spc. 4nfb>(8) of the Foreicrti Military Salp^ Act (Public Law 90-629) substituted 
"spction o06" in lieu of "sections 506, 522, and 523,". (See page 265.) 
2^ For text, see page S38. 



120 



other appropriations or accounts under part I : Provided^ That as of 
the end, of such fiscal j^ear such expenses shall be finally charged to 
applicable appropriations or accounts with proper credit to the appro- 
priations or accounts initially utilized for financing purposes: Pro- 
vided further. That such final charge to applicable appropriations or 
accounts shall not be required in the case of expenses (other than those 
provided for under section 637(a)) incurred in furnishing assistance 
by the agency primarily responsible for administering part I where 
it is determined that the accounting costs of identifying the applicable 
appropriation or account to which such expenses should be charged 
would be disproportionate (o the advantage to be gained. 

Sec. 633.^^^ Waivers of Certain Laws. — (a) Wlienever the Presi- 
dent determines it to be in furtherance of the purposes of this Act, the 
functions authorized under this Act, may be performecl without re- 
gard to such provisions of law (other than the Renegotiation Act of 
1951, as amended (50 U.S.C. App. 1211 et sec[.) ), regulating the mak- 
ing, performance, amendment, or modification of contracts and the 
expenditure of funds of the United States Government as the Pres- 
ident may specify.^^^ 

(b) The functions authorized under part II may be performed 
without regard to such provisions as the President may specif}^ of the 
joint resolution of Novem.ber 4, 1939 (54 Stat. 4), as amended. 

(c) Notwithstanding the provisions of sections 3544(b) and 8544(b) 
of title 10 of the United States Code, personnel of the Department of 
Defense may be assigned or detailed to any civil office to carry out this 
Act. [Referenced sections repealed by Public Law 90-235. See 10 
U.S.C. 973 (b).] 

Sec. %UJ^^' Reports and Information.^^^— (a)^^^ * ^< * ^j^^- 
pealed— 1972] 

(b) The President shall, in the reports required by subsection (a) 
of this section, and in response to requests from ^lem.bers of the Con- 
gress or inquiries from the public, make public all information con- 
cerning operations under this Act not deemed by him to be incom- 
patible with the security of the United States. In the case of each loan 
made from the Development Loan Fund established pursuant to sec- 
tion 201(a) the President shall make public appropriate information 
about the loan, including information about the borrower, the nature 
of the activity being financed, and the economic development objec- 
tives being served by the loan. 

(c) None of the funds made available pursuant to the provisions of 
this x\ct shall be used to carry out any provision of this Act in any 
country or with respect to any project or activity, after the expiration 
of the thirty-five-day period which begins on the date the General 
Accounting Office or any committee of the Congress charged with con- 
sidering legislation, appropriations or expenditures under this Act, 
has delivered to the office of the head of any agency carrying out such 
provision, a written request that it be furnished any document, paper, 
communication, audit, review, finding, recommendation, report, or 



22 use § 2393. 
E"® See Executive Order 11223, page 248. 
"«22 use S 2394. 

YoT other reports required to be submitted to Congress, see Reports to Congress. Index. 
^2 Subsection (a), relating to report on fiscal year operations, was repealed by Sec. 
304(c) (2) of the FAAct of 1971. 



121 



other material in its custody or control relating to the adniinistration 
of such provision in such countiy or with respect to such project or 
activity, unless and until there has been furnished to the Cre^^rai Ac- 
counting Office, or to such committee, as the case may be, (1) the docu- 
ment, paper, communication, audit, review, finding, recommenaation, 
report, or other material so requested, or (2) a certification by the 
President that he has forbidden the furnishing thereof pursuant to 
request and his reason for so doing.^'^ ^ . 

(d) When requests are presented to the Congress for appropriations 
for fiscal year 1969 to carry out programs under this Act, the programs 
to be carried out yvith the funds appropriated for that fiscal year shall 
also be presented to the Committee on Foreign Relations of the Senate, 
if requested by the chairman of that committee, and to the Committee 
on Foreign Affairs of the House of Representatives, if requested by 
the chairman of that committee.^^^ xVt the end of each fiscal year,^^^ 
the President shall notify the Committee on Foreign Relations and 
the Committee on Appropriations of the Senate and the Speaker of 
the House of Representatives of all actions taken during the fiscal 
year^-'^ under this Act which resulted in furnishing assistance oi a 
a kind, for a purpose, or to an area, substantially different from that 
included in the presentation to the Congress during its consideration 
of this Act or any Act appropriating funds pursuant to authoriza- 
tions contained in this Act, or wliich resulted in obligations or reser- 
vations greater by 50 per centum or more than the proposed obliga- 
tions or reservations included in such presentation for the program 
concerned, and in his notification the President shall state the justi- 
fication for such changes. There shall also be included in the presen- 
tation material submitted to the Congress during its consideration of 
amendments to this Act, or of any Act appropriating funds pursuant 
to authorizations contained in this Act, a comparison of the current 
fiscal year programs and activities with those presented to the Con- 
gress in the previous year and an explanation of any substantial 
clianges.^^^ Any such presentation material shall also include (1) a 
chart showing on a country-by-countiy basis the full extent of all 
United States assistance planned or expected for each such country for 
the next fiscal year, including economic assistance, military grants 
(and including for any such grant of any excess defense article, the 
value of such article expressed in terms of its acquisition cost to the 
United States), and military salcs,^'*' under this or any other ^''^ Act 
and sales under tlie Agricultural Trade Development and xVssistance 
Act of 1954, as amended,^^'-^ (2) details of proposed contributions by 
the United States to multilateral financial agencies, for the next fiscal 
year, and (3) a statement of projects, on a country-by-country basis 
for which financing was supplied during the last fiscal year through 

^^■^ See also Sec. 624(d)(7) of this Act and Sec. 502 of the FA Appropriation Act, 1972. 
5** The first sentence was added bv Sec. 302(h) (1) (A) of the FAAct of 1967. 

Sec. 302(f) (1) of the FAAct of 1962 substituted the words "At the end of each fiscal 
year" and "fiscal year" for the words "In January of each year" and "preceding twelve 
months", respectively. 

^«This .sentence was added by Sec. 302(f)(2) of the FAAct of 1962. 

Sec. 14 of the FAAct of 1974 substituled the words to this point, beginning with "in- 
cluding economic assistance * * *" in lieu of "including economic assistance and military 
grants and sales". 

"'■^ The words "or anv other" were added by Sec. 45(b) (4) of the Foreign Military Sales 
Act (Public Law 90-629). 
For text, see page ?54. 



122 



the Export-Import Bank.-^^^ In addition, the President shall promptly 
notify the Committee on Foreign Kelations and the Committee on 
Appropriations of the Senate and the Speaker of the House of Repre- 
sentatives of any determination under section 303, 610(b),^°^ or 614(b) 
and of any findings, including his reasons therefor, under section 503 
or r)21{c).-^=i 

(e) The President shall include in his recommendation to the Con- 
gress for programs under this Act for each fiscal year a specific plan 
for each country receiving bilateral grant economic assistance 
whereby, wherever practicable, such grant economic assistance shall be 
progressively reduced and eventually terminated. 

^1^ 552 rJ^Y^Q Prcsidcnt shall transmit to the Speaker of the House of 
Representatives and to the Committee on Foreign Relations of the Sen- 
ate a comprehensive report showing, as of June 30 and December 31 
of each year, the status of each loan and each contract of guarantee 
or insurance theretofore made under this Act, with respect to which 
there remains outstanding any unpaid obligation or potential liability ; 
the status of each sale of defense articles or defense services on credit 
terms, and each contract of guarantee in connection with any such sale, 
theretofore made under the Foreign Military Sales Act,°^^ with respect 
to which there remains outstanding any unpaid obligation or potential 
liability ; the status of each sale of agriculture commodities on credit 
terms theretofore made under the Agricultural Trade Development 
and Assistance Act of 1054:,''^* Vv ith respect to which there remains out- 
standing any unpaid obligation ; and the status of each transaction in 
which a loan, contract of gTiarantee or insurance, or extension of credit 
(or participation therein) was theretofore made under the Export- 
Import Bank Act of 1945,^''^ with respect to which there remains out- 
standing any unpaid obligation or potential liability. Such report shall 
include individually only any loan, contract, sale, extension of credit, 
or other transaction listed in this subsection in excess of $1,000,000.^^^ 

^g^ 557 'Yi^Q President shall transmit to the Speaker of the House of 
Representatives and to the Committee on Foreign Relations of the 
Senate, not later than January 31 of each year, a comprehensive 
report, based upon the latest data available, showing — 

(1) a summary of the worldwide dimensions of debt-servicing 
problems among such countries, together with a detailed state- 
ment of the debt-servicing problems of each such country; 



With the exception of the additional words noted in footnote 548, this sentence was 
added by Sec. 302(h) (1) (B) of the FAAct of 3967. 

--iSec. 304(a)(3) of the FAAct of 1971 substituted "610(b)" in lien of "'610, 614(a)". 
The words to this point, bej?inning with "and of any finding," were added by Sec. 302(h) 
(1) (C) of the FAAct of 1967. Sec. 521 was repealed by Sec. 45(a) of the Foreign Military 
Sales Act (P.L. 90-029). 

Subsection (f ) was added by Sec. 302(c) of the FAAct of 1966. Sec. 17 of the FAAct 
of 1973 amended subsection (f), which formerly read as follows : 

"(f) The Secretary of the Treasury shall transmit to the Speaker of the House of Repre- 
sentatives and to the Committee on Foreign Relations of the Senate semiannual reports 
showing as of June 30 and December 31 of each year the repayment status of each loan 
thpretofore made under authority of this Act any part of the principal or interest of which 
remains unpaid on the date of the report." 

^3 For text, see page 253. 

zrA por text, see page 284. 

^ For text, see page 831. 

^ For other reports required to be submitted to Congress, see Reports to Congress. Index. 
Subsection (g) was added by Sec. 17 of the FAAft of 1973. Former subsection (g), 
which related to semiannual reports by the Secretary of State to the Congress of all 
exports of significant defense articles, was repealed by Sec. 45(a) of the Foreign Military 
Sales Act (Public Law 90-629) , 1968. 



123 



(2) a summary of all forms of debt relief granted by the United 
States with respect to such countries, together ^\iih a detailed 
statement of the specific debt relief granted with respect to each 
such country and the purpose for which it was granted ; 

(3) a summary of the worldwide effect of the debt relief 
granted by the United States on the availability of funds, author- 
ity, or other resources of the United States to make any such loan, 
sale, contract of guarantee or insurance, or extension of creclit, 
together with a detailed statement of the effect of such debt relief 
with respect to each such country ; and 

(4) a summary of the net aid flow from the United States to 
such countries, taking into consideration the debt relief granted by 
the United States, together with a detailed analysis of such net 
aid flow with respect to each such country."*^ 

(h)^^^ The background documents transmitted to Congress in 
each fiscal year supporting requests for new authoiizations and appro- 
priations to carry out the programs under part II of this Act shall 
contain information concerning the proposed funding levels for mili- 
tar}^ assistance and sales to South Vietnam, Thailand, and Laos. 

Sec. 635.^^^ General Authorities. — (a) Except as otherwise specif- 
ically provided in this Act, assistance under this Act may be fur- 
nished on a grant basis or on such terms, including cash, credit, or 
other terms of repaj^ment (including repayment in foreign currencies 
or by transfer to the United States Government of commodities) as 
may be determined to be best suited to the achievement of the purposes 
of this Act, and shall emphasize loans rather than grants wherever 
possible. 

(b) The President may make loans, advances, and grants to, make 
and perform agreements and contracts with, or enter into other trans- 
actions with, any individual, corporation, or other body of persons, 
friendly government or government agency, whether within or with- 
out the United States and international organizations in furtherance 
of the purposes and within the limitations of this Act. 

(c) It is the sense of Congress that the President, in furthering the 
purposes of this Act, shall use to the maximum extent practicable the 
services and facilities of voluntaiy, nonprofit organizations registered 
with, and approved by, the Advisory Committee on Voluntary Foreign 
Aid. 

(d) The President may accept and use in furtherance of the pur- 
poses, of this Act, money, funcls, property, and services of any kind 
made available by gift, devise, bequest, grant, or otherwise for such 
purpose. 

(e) (1)^^^ Any agency of the United States Government is author- 
ized to pay the cost of health and accident insurance for foreign par- 
ticipants in any program of furnishing technical information and 
assistance administered by such agency while such participants are 
absent from their homes for the purpose of participation in such 
program. 

Any agency of the United States Government is authorized 
to pay the cost of health and accident insurance for foreign employees 

^ Subsection (h) was added by Sec. 302(h) (2) of the FAAct of 1967. 

22 use § 2395. 

^Sec. 302(i)(l) of the FAAct of 1967 added paragraph designation "(1)" and 



124 



of that agency while those employees are absent from their places of 
employment abroad for purposes of training or other official duties. 

(f) Alien participants in any program of furnishing technical in- 
formation and assistance under this Act niay be admitted to the United 
States if otherwise qualified as nonimmigrants under section 101(a) 
(15) of the Immigration and Nationality Act, as amended (8 U.S.C. 
1101(a) (15) ), for such time and under such conditions as may be 
prescribed by regulations promulgated by the Secretary of State and 
the Attorney General.^^^ 

(g) 562 jj^ making loans under this Act, the President — 

(1) may issue letters of credit and letters of commitment; 

(2) may collect or compromise any obligations assigned to, or 
held by, and any legal or equitable rights accruing to him, and, as 
he may determine, refer any such obligations or rights to the 
Attorney General for suit or collection ; 

(3) may acquire and dispose of, upon such terms and conditions 
as he may determine, any property, including any instrument evi- 
dencing indebtedness or ownership (provided that equity securi- 
ties may not be directly purchased although such securities may be 
acquired by other means such as by exercise of conversion rights 
or through enforcement of liens or pledges or otherwise to satisfy 
a previously incurred indebtedness), and guarantee payment 
against any such instrument ; 

(4) may determine the character of, and necessity for, obliga- 
tions and expenditures of funds used in making such loans and the 
manner in which they shall be incurred, allowed, and paid, subject 
to provisions of law specifically applicable to corporations of the 
United States Government ; and 

(5) shall cause to be maintained an integral set of accounts 
which shall be audited by the General Accounting Office in ac- 
cordance with principles and procedures applicable to commer- 
cial corporate transactions as provided by the Government 
Corporation Control Act, as amended (31 U.S.C. 841 et seq.). 

(h) A contract or agreement which entails commitments for the 
expenditure of funds available imder titles II, V, and VI (ex- 
cept development loans) of chapter 2 of part I and under part II 
may, subject to any future action of the Congress, extend at any time 
for not more than five years. 

(i) Claims arising as a result of investment guaranty operations 
mxay be settled, and disputes arising as the result thereof may be arbi- 
trated with the consent of the parties, on such terms and conditions 
as the President may direct. Payment made pursuant to any such 
settlement, or as a result of an arbitration award, shall be final and 
conclusive notwithstanding any other provision of law. 

(j) The provisions of section 955 of title 18 of the United States 
Code shall not apply to prevent any person, including any individual, 
partnership, corporation, or association, from acting for, or participat- 
ing in, any operation or transaction arising under this Act, or from 

See See. 101(a) (15) (J) of the Immij^ration and Nationality Act (8 USC 3 1101). 

^- The words "and sales", -which appeared at this point, were added by Sec. 302(g) of 
the FAAct of 1905. See. 302(1) (2) of the FAAct of 1907 provided that the words "and 
sales" be deleted from this subsection, effective June 30, 1968. 

"^a^Sec. 302 (1?) of the FAAct of 1962 deleted the word "made" which appeared after 
the word "funds" and substituted the words ". V. and VI" for "and V". 

^* The words "(except development loans)" were added by Sec. 302(d) of the FAAct of 
1966. 



125 



acquiring any obligation issued in connection with any operation or 
transaction arising imder this Act. 

(k) Any cost- type contract or agreement (including grants) en- 
tered into with a university, college, or other educational institution 
for the purpose of carrying out programs authorized by part I may 
provide for the payment of the reimbursable indirect costs of said 
university, college, or other educational institution on the basis of pre- 
determined fixed-percentage rates applied to the total or an element 
thereof, of the reimbursable direct costs incurred. 

Sec. 636.^*^^ Provisions on Uses of Funds. — (a) Appropriations 
for the purposes of or pursuant to this Act (except for Part II), 
allocations to any agency of the United States Government, from 
other appropriations, for functions directly related to the purposes 
of this Act, and funds made available for other purposes to the agency 
primarily responsible for administering part I, shall be available for : 

(1) rent of buildings and space in buildings in the United 
States, and for repair, alteration, and improvements of such 
leased properties ; 

(2) expenses of attendance at meetings concerned with the 
purposes of such appropriations of this Act, including (notwith- 
standing the provisions of section 9 of Public Law 6(>-328 (31 
U.S.C. 673)) expenses in connection with meetings and persons 
whose employment is authorized by section 626 ; 

(3) contracting with individuals for personal service abroad: 
Provided^ That such individuals shall not be regarded as em- 
ployees of the United States Government for the purpose of any 
law administered by the Civil Service Commission ; 

(4) purchase, maintenance, operation, and hire of aircraft: 
Provided^ That aircraft for administrative purposes may be pur- 
chased only as specifically provided for in an appropriation or 
other Act ; 

(5) purchase and hire of passenger motor vehicle: Provided^ 
That, except as may otherwise be provided in an appropriation 
or other Act, passenger motor vehicles for administrative pur- 
poses outside the United States may be purchased for replacement 
only, and such vehicles may be exchanged or sold and replaced by 
an equal number of such vehicles and the cost, including exchange 
allowance, of each such replacement shall not exceed $3,500 m 
the case of an automobile for the chief of any special mission or 
staff outside the United States established under section 631 : Pro- 
vided further^ That passenger motor vehicles other than one for 
the official use (without regard to the limitations contained in 
section 5 of Public Law 63-127, as amended (31 U.S.C. 
638a(c) (2)),=^' and section 201 of Public Law 85-468 (31 U.S.C. 
638 (c))^^'^ of the head of the agency primarily responsible for 
administering part I, may be purchased for use in the United 
States only as may be specifically provided in an appropriation 
or other Act ; 

•^'^ Subsection (k) was added bv Sec. 302(e) of the FAAct of 1963. 
22 use § 2396. 

Sec. 302(j) (1) of the FAAct of 1967 substituted "(31 U.S.C. 638a(2)," for "(5 U.S.C. 
78(c) (2)". 

Sec. 302(j)(2) of the FAAct of 1967 substituted "(31 U.S.C. 638c)" for "(5 U.S.C. 

Ysn — 1 ^ " 



126 



(6,) entertainment (not to exceed $25,000 in any fiscal year 
except as may otherwise be provided in an appropriation or other 
Act) ; 

(7) exchange of funds without regard to section 3651 of the 
Eevised Statutes (31 U.S.C. 543) and loss by exchange; 

(8) expenditures (not to exceed $50,000 in any fiscal year ex- 
cept as may otherwise be provided in an appropriation or other 
Act) of a confidential character other than entertainment: Pro- 
vided^ That a certificate of the amount of such expenditure, the 
nature of which it is considered inadvisable to specify, shall be 
made by the head of the agency primarily responsible for admin- 
istering part I or such person as he may designate, and every 
such certificate shall be deemed a sulScient voucher for the amount 
therein specified ; ^-'^ 

(9) insurance of official motor vehicles or aircraft acquired for 
use in foreign countries; 

(10) rent or lease outside the United States for not to exceed 
ten years of offices, buildings, grounds, and quarters, including 
living quarters to house personnel, and payments therefor in 
advance; maintenance, furnishings, necessary repairs, improve- 
ments, and alterations to properties owned or rented by the United 
States Government or made available for use to the United States 
Government outside the United States; and costs of fuel, water, 
and utilities for such properties; 

(11) expenses of preparing and transporting to their former 
homes, or, with respect to foreign participants engaged in any 
program under part I, to their former homes or places of burial, 
and of care and disposition of, the remains of persons or members 
of the families of persons who may die while such persons are 
away from their homes participating in activities carried out 
with funds covered by this subsection; 

( 12 ) purchase of uniforms ; 

(13) payment of per diem in lieu of subsistence to foreign 
participants engaged in any program imder part I while such 
participants are away from their homes in countries other than the 
United States, at rates not in excess of those prescribed by the 
standardized Government travel regulations, notwithstanding any 
other provision of law ; 

(14) use in accordance with authorities of the Foreign Service 
Act of 1940, as amended ^"^ (22 U.S.C. 801 et seq.), not otherwise 
provided for; 

(15) ice and drinking water for use outside the United States; 

(16) services of commissioned officers of the Environmental 
Science Services Administration and for the purposes of pro- 
viding such services the Environmental Science Services Ad- 
ministration ^'^ may appoint not to exceed twenty commissioned 
officers in addition to those otherwise authorized ; 

(17) expenses in connection with travel of personnel outside 
the United States, including travel expenses of dependents (in- 



Rpe also Sees. 614(a) and 624(d) (7) of this Act. 
670 Yov text, fee papre 423. 

Sec. 302 (k) of the FAAct of 1967 substituted "Environmental Science Services 
Administration" in lieu of "Coast and Geodetic Survey." 



127 



eluding expenses during necessary stopovers while engaged in 
such travel), and transportation of personal effects, household 
goods, and automobiles of such personnel when any part of such 
travel or transportation begins in one fiscal year pursuant to 
travel orders issued in that fiscal year, notwithstanding the fact 
that such travel or transportation may not be completed during 
the same fiscal year, and cost of transporting automobiles to and 
from a place of storage, and the cost of storing automobiles of 
such personnel when it is in the public interest or more economical 
to authorize storage. 

(b) Funds made available for the purposes of this Act may be used 
for compensation, allowances, and travel of personnel including For- 
eign Service personnel whose services are utilized primarily for the 
purposes of this Act, for printing and binding without regard to the 
provisions of any other law, and for expenditures outside the United 
States for the procurement of supplies and services and for other 
administrative and operating purposes (other than compensation of 
personnel) without regard to such laws and regulations governing 
the obligation and expenditure of funds of the United States Govern- 
ment as may be necessary to accomplish the purposes of this Act. 

(c) Notwithstanding any other law, not to exceed $3,000,000 of the 
funds available for assistance under this Act (other than title I of 
chapter 2 of part I) may be used in any fiscal year (in addition to 
funds available for such use under other authorities in this Act) to 
construct or otherwise acquire outside the United States (1) essential 
living quarters, office space, and necessary supporting facilities for 
use of personnel carrying out activities authorized by this Act, and 
(2) schools (including dormitories and boarding facilities) and hos- 
pitals for use of personnel carrying out activities authorized by this 
Act, United States Government personnel, and their dependents. In 
addition, funds made available for assistance under this Act (other 
than title I of chapter 2 of part I) may be used, notwithstanding any 
other law, to equip, staff, operate, and maintain such schools and 
hospitals. 

(d) Not to exceed $2,500,000 •'^'^ of funds available for assistance 
under this Act (other than title I of chapter 2 of part I) may be used 
in any fiscal year to provide assistance, on such terms and conditions 
as are deemed appropriate, to schools established, or to be established, 
outside the United States whenever it is determined that such action 
would be more economical or would best serve the interests of the 
United States in providing for the education of dependents of per- 
sonnel carrying out activities authorized by this Act and dependents 
of United States Government personnel, in lieu of acquisition or con- 
struction pursuant to subsection (c) of this section. 

(e) Funds available under this Act (other than title I of chapter 
2 of part I) may be used to pay costs of training United States citizen 
personnel employed or assigned pursuant to section 625(d)(2) 
(through interchange or otherwise) at any State or local unit of gov- 
ernment, public or private nonprofit institution, trade, labor, agri- 
cultural, or scientific association or organization, or commercial firm ; 
and the provisions of Public Law 84-918 (7 U.S.C. 1881 et seq.) may 

^"Sec. 302(1) of the FAAct of 1967 substituted "$2,500,000" in lieu of "$1,500,000". 

65-998 — 76 10 



128 



be used to carry out the foregoing authority notwithstanding that 
interchange of personnel may not be involved or that the training may 
not take place at the institutions specified in that Act. Such training 
shall not be considered employment or holding of office under section 
5533 of title 5 of the United States Code,^^^ and any payments or con- 
tributions in connection therewith may, as deemed appropriate by the 
head of the agency of tlie United States Government authorizing*^such 
training, be made by private or public sources and be accepted by any 
trainee, or may be accepted by and credited to the current applicable 
appropriation of such agency : Provided^ hoicever^ That any such pay- 
ments to any employee in the nature of compensation shall be in lieu, 
or in reduction, of compensation received from the United States 
Government. 

(f ) Funds made available under section 212 may be used for ex- 
penses (other than those provided for under section 637(a) ) to assist 
in carrying out functions under title I of chapter 2 of part I. under 
the Agricultural Trade Development and Assistance Act of 1954, as 
amended ^'^ (7 U.S.C. 1691 et seq.), and under the Latin American 
Development Act, as amended (22 U.S.C. 1942 et seq.), performed 
by the agency primarily responsible for administering part I or by 
the Corporation established under title IV of chapter 2 of part I with 
respect to loan activities which it carries out under the provisions of 
the Agricultural Trade Development and Assistance Act of 1954, as 
amended.-*^ 

(g) Funds made available for the purposes of part II shall be avail- 
able for — 

(1) administrative, extraordinary (not to exceed $300,000 in 
any fiscal year), and operating expenses incurred in furnishing 
defense articles and defense services on a grant or sales basis by 
the agency primarily responsible for administering part II ; 

(2) reimbursement of actual expenses of military officers de- 
tailed or assigned as tour directors in connection Avith orientation 
visits of foreign military personnel, in accordance with the pro- 
visions of section 5702(c) of title 5 of the United States Code,^^^ 
applicable to civilian officers and employees ; and 

(3) maintenance, repair, alteration, and furnishing of United 
States-owned facilities in the District of Columbia or elsewhere 
for the training of foreign military personnel, without regard to 
the provisions of section 3733 of the Revised Statutes (41 U.S.C. 
12) or other provision of law requiring a specific authorization 
or specific appropriation for such public contracts. 

(h) In cerrying out programs under this Act, the President shall 
take all appropriate steps to assure that, to the maximum extent 
possible, (1) countries receiving assistance under this Act contribute 
local currencies to meet the cost of contractual and other services 
rendered in conjunction with such programs, and (2) foreign curren- 

5-3 Sec. 302 (m) of the FAAct of 1967 substituted "5533 of title 5 of the United States 
Code" in lien of "301 of the Dual Compensation Act (5 U.S.C. 3105)". 

^* For text, see page 285. 

Sec. 302(h) ^2) of the FAAct of 1065 substituted the words "Lratin American Develop- 
ment Act. as amended" for "Act to Provide for assistance in the development of Latin 
America and in the reconstruction of Chile, and for other purposes". See pa?e 20&. 

s'oThe words to this po:nt, boicjinning with "or by the Corporation'", were added by 
Sec. 306 of the FAAct of 1960. 

^■^7 The words to this point, beginning with "incurred in furnishing" were added by 
Sec. 302(d) of the FAAct of lOOS. 

■^'"Sec. 302(n) of the FAAct of 3967 substituted "5702(0 of title 5 of the United States 
Code" in lion of "3 of the Travel Expense Act of 194!). as amended (5 U.S.C. 836),". 

5™ Subsection (h) was added by Sec. 302(f) of the FAAct of 1963. 



129 



cies owned by the United States are utilized to meet the costs of such 
contractual and other services. 

(i) Notwithstanding section 640 or any other provision of this 
Act, none of the funds made available to carry out this Act shall be 
used to finance the purchase, sale, long-term lease, exchange, or 
guaranty of a sale of motor vehicles unless such motor vehicles are 
manufactured in the United States: Provided^ That where special 
circumstances exist the President is authorized to waive the provisions 
of this section in order to carry out the purposes of this Act. 

Sec 637.^^^ Administrative Exper.ses. — (a) There is hereby au- 
thorized to be appropriated to the President for each of the fiscal years 
1974 and 1975, $45,000,000,^^^ f^^ necessary administrative expenses of 
the agency primarily responsible for administering part I. The 
agency administering part I shall reduce the nmnber of personnel, 
particularly administrative personnel, employed by it in order to 
conduct operations with the reduced amount of funds authorized for 
fiscal year 1969, except that such agency shall not take any action to 
limit or reduce auditing or training activities of such agency.^^^ 

(b) There is hereby authorized to be appropriated such amounts 
as may be necessary from time to time for administrative expenses 
which are incurred for functions of the Department of State under 
this Act and unrepealed provisions of the Mutual Security Act of 
1954, as amended, or for normal functions of the Department of State 
which relate to such f unctions.^^^ 

Sec. 638.5^« Exclusions."'^^— Xo provision of this Act shall be con- 
strued to prohibit assistance to any country pursuant to the Peace 
Corps Act, as amended; the Mutual Educational and Cultural Ex- 
change Act of 1961, as amended; or the Export-Import Bank Act 
of 1945. as amended."'^'^ 

Sec. 639.5^2 593 Famine or Disaster Relief.—* * * [Repealed— 
1975] ^ 

Sec. 640.5^* Military Sales.— * * * [Repealed— 106S] 

Sec. 640A.5^5 False Claims and Ineligible Commodities.— 
(a) Any person who makes or causes to be made or presents or causes 
to be presented to any bank or other financial institution or to any 
officer, agent, or employee of any agency of the United States Gov- 

^ ^^oo^ USC 0397 ^^^^^ ^^^^^^ °^ 

<r,^'JJ^^^^yp^'^lv"^'l'' ^^t^^s^^^ y^^rs ^^"^^ 3 975, $45,000,000 were substituted 

by So?. IS ofThfrA let of 1973 ' ^O'^ the fiscal yeAr 1973, $50,000,000" 
' FA Appropriation Act, 1975^: $40,000,000 



5.S3 



The last sentence was added by Sec. 302(e) of the FAAct of 1968. 



SerJo¥(h7(2^f of'?he''FlAc?ST9^^^ ^^^^ ^'"'^'^ 

qoTn^Vo R?,^?^''V''fj''i' ^""h ^^'5 = $4 800.000 as authorized by this section and bv sec. 
Defense AsslSe cIS ''^^ 

ThPwn^S^Hi^V^^^V^IJr^i'o^M^^^^e^ by Sec. 302(h) of the FAAct of 1963. 
by Sec. 19 of fhe FAAcFff ?973 "^""^ substituted in lieu of "PEACE CORPS ASSISTANCE" 
5^ For text, see^pajre 327. 
Z?'^ V.^^ I -431- For text, see page 648. 
12 use § 635. For text, see page 831. 
a-encies^ ^n^^^ i-t\J^JT^^'^}^^ a"^"^ disaster relief, including such relief through voluntary 
Is flmpn>pH- LJ.'/^^ " Agricultural Trade Development and Assistance Act of 1954, 

of 1965 ' appeared at this point, were struck out by Sec. 202 (j) of the FAAct 

16r(Sq';stU 'sSr'"^ Disaster Relief was repealed by Sec. 101(6) of Public Law 94- 
^^l^Sr^yl^^ and 494B, re- 

90^269)': fsee^ageTef )"^ ^^^^^ ^mitary Sales Act (Public Law 

^22 use 2S99b. Sec. 640A was added by Sec. 302 (i) of the FAAct of 1968. 



130 



ernment-a claim for payment from funds made available under this 
Act for the purposes of furnishing assistance and who knows the 
claim to be false, fraudulent, or fictitious or to cover a commodity or 
commodity-related service determined by the President to be ineligi- 
ble for payment from funds made available under this Act, or who 
uses to support his claim any certification, statement, or entry on any 
contract, bill of lading, Government or commercial invoice, or Gov- 
ernment form, which he knows, or in the exercise of prudent business 
management should Imow, to contain false, fraudulent, or fictitious 
information, or who uses or engages in any other fraudulent trick, 
scheme, or device for the purpose of securing or obtaining, or aiding to 
secure or obtain, for any person any benefit or payment from funds 
so made available under this Act in connection with the negotiation, 
procurement, award, or performance of a contract financed with funds 
so made available under this Act, and any person who enters into an 
agreement, combination or conspiracy so to do, (1) shall pay to the 
United States an amount equal to 25 per centum of any amount there- 
b}^ sought to be wrongfully secured or obtained but not actually re- 
ceived, and (2) shall forfeit and refund any payment, compensation, 
loan, commission, or advance received as a result thereof, and (3) shall, 
in addition, pay to the United States for each such act (A) the sum 
of $2,000 and double the amount of any damage which the United 
States may have sustained by reason thereof, or ( B ) an amount equal 
to 50 per centum of any such payment, compensation, loan, commis- 
sion, or advance so received, whichever is the greater, together with 
the costs of suit. 

(b) In order to secure recovery under this section, the President 
may, as he deems appropriate, (1) institute suit in the United States 
district court for any judicial district in which the person alleged to 
have performed or participated in an act described by this section may 
reside or may be found, and (2) upon posting by registered mail to 
such person a notice of claim describing the basis therefor and identi- 
fying the funds to be withheld, withhold from funds owed by any 
agency of the United States Government to such person an amount 
equal to the refund, damages, liquidated damages, and exemplary 
damages claimed by the United States under this section. Any such 
withholding of funds from any person shall constitute a final deter- 
mination of the rights and liabilities of such person under this sec- 
tion with respect to the amount so withheld, unless within one year of 
receiving the notice of claim such person brings suit for recovery, 
which is hereby authorized, against the United States in any United 
States district court. 

(c) For purposes of this section, the term "person" includes any 
individual corporation, partnership, association, or other legal entity. 

Sec. 640B. Coordination.^"^ — (a) The President shall establish a 
system for coordination of United States policies and programs which 
affect United States interests in the development of low-income coun- 
tries. To that end, the President shall establish a Development Coordi- 
nation Committee which shall advise him with respect to coordina- 
tion of United States policies and programs affecting the development 
of the developing countries, including programs of bilateral and mul- 
tilateral development assistance. The Committee shall include the head 
of the agency primarily responsible for administering part I, Chair- 
man, and representatives of the Departments of State, Treasury, Com- 



22 use 2399c. Sec. 640B was added by Sec. 21 of the FAAct of 1973. 



131 



merce. Agriculture, and Labor, the Executive Office of the President 
and other executive departments and agencies, as the President shall 
designate. 

(b) The President shall prescribe appropriate procedures to assure 
coordination among — 

(1) the various departments and agencies of the United States 
Government having representatives in diplomatic missions 
abroad; and 

(2) representatives of the United States Government in each 
countr}^, under the direction of the Chief of the United States 
Diplomatic Mission. 

The President shall keep the Congress advised of his actions under 
this subsection. 

(c) Programs authorized by this Act shall be undertaken with the 
foreign policy guidance of the Secretary of State. 

(d) The President shall report to the Congress during the first quar- 
ter of each calendar year on United States actions affecting the devel- 
opment of the low-income countries and on the impact of those under- 
takings upon the national income, employment, wages, and working 
conditions in the United States. 

Sec. 640C.^^^ Shipping Differential. — For tlio purpose of facilitat- 
ing implomontn.tion of section 001 (b) of the ^Merchant Marine Act, 
1936 (46 U.S.C. 1241(b)), funds made available for the purposes of 
chapter 1 of part I or for purposes of Part V may be used to make 
grants to recipients to pay all or any portion of such differential as is 
determined by the Secretary of Commerce to exist between United 
States and foreign-flag vessel charter or freight rates. Grants made 
under this section shall be paid with United States-owned foreign 
currencies wherever feasible. 

Chapter 3 — Miscellaneous Provisions 

Sec. 641.^^9 Effective Date and Identification of Pros^rams.— 

This Act shall take effect on the date of its enactment. Programs 
under this Act shall be identified appropriately overseas as "American 
Aid". 

Sec. 642. Statutes Repealed. — (a) There are hereby repealed — 

( 1 ) Reorganization Plan Numbered 7 of 1953 ; 

(2) the Mutual Securitv Act of 1954, as amended (except sec- 
tions ««« 402, 408, 414, 4i7, 502(a), 502(b), 514, 523(d), and 
536). 601 602 ' ' \ n \ n . \ J, 

(3) section 12 of the Mutual Security Act of 1955 ; 

Index other reports required to be submitted to Congress, see Reports to Congress 
rVcn ^^^^ '"'^'^^ ^^"^^"^ ^1 of the FAAct of 1973. 

«oo s_pc. 303(a) of the FAAot of 1965 struck out section 143 of the Mutual Security Act 
^ J T?"^ amended, which was retained bv the FAAct of 1961. 

601 por text, see Retained Provisions, page 210, Subsections (a), (c). and (d) of Sec. 405 
ot the Mutual Security Act of 1954. as amended, and subsection (c) of Sec. 451 of the said 
'^^^^ retained by the Foreign Assistance Act of 1961, were repealed by Sec. 6 
fio2-^,^*^^''^^^" Refusree Assistance Act of 1962 (Public Law 87-510). 

The words " : ProvkJerl . That niitil the enactment of lecrislation authorizinsr and 
funds for activities heretofore carried on pursuant to sections 405(a). 405(0). 
4U.'>(rtJ, and 451(c) of the Mutual Security Act of 1954. as amended, such activities 
may be continued with funds made available under section 451(a) of this Act", which 
appeared at this point, were struck out by Sec. 303(a) of the FAAct of 1965. 



132 



(4) sections 12, 13, and 14 of the Mutual Security Act of 1956 ; 
( 5 ) section 503 of the Mutual Security Act of 1958 ; 

(6) section 108 of the Mutual Security Appropriation Acty 
1959; 

(7) section 501(a), chapter VI, and sections 702 and 703 of the 
Mutual Security Act of 1959, as amended ; and 

(8) section 604 and chapter VIII of the Mutual Security Act 
of 1960. 

(b) Keferences in law to the Acts, or provisions of such Acts, re- 
pealed by subsection (a) of this section shall hereafter be deemed to 
be references to this Act or appropriate provisions of this Act. 

(c) The repeal of the Acts listed in subsection (a) of this section 
shall not be deemed to affect amendments contained in such Acts to 
Acts not named in that subsection. 

Sec. 643.^°^ Saving Provisions. — (a) Except as may be expressly 
provided to the contrary in this Act, all determinations, authorizations, 
regulations, orders, contracts, agreements, and other actions issued, 
undertaken, or entered into under authority of any provision of law 
repealed by section 642(a) and the Foreign Assistance Act of 1969 
shall continue in full force and effect until modified by appropriate 
authority. 

(b) Wherever provisions of this Act establish conditions which must 
be complied with before use may be made of authorit}^ contained in, or 
funds authorized by, this Act, compliance with, or satisfaction of, sub- 
stantially similar conditions under Acts listed in section 642(a) and 
the Foreign Assistance Act of 1969 or Acts repealed by those Acts 
shall be deemed to constitute compliance with the conditions estab- 
lished by this Act. 

(c) Funds made available pursuant to provisions of law repealed by 
section 642(a)(2) and the Foreign Assistance Act of 1969^°^ shall, 
unless otherwise authorized or provided by law, remain available for 
their original purposes in accordance with the provisions of law orig- 
inally applicable thereto, or in accordance with the provisions of laV 
currently applicable to those purposes. 

(^yo<i * * * [Repealed— 1962] 

Sec. (>44.^^^ Definitions. — As used in this Act — 

(a) "Agency of the United States Government" includes any agency, 
department, board, wholly or partly owned corporation, instrumen- 
tality, commission, or establishment of the United States Government. 

(b) "Armed Forces" of the United States means the Army, Navy, 
Air Force, Marine Corps, and Coast Guard. 

(c) "Commodity" includes any material, article, supply, goods, or 
equipment used for the purposes of furnishing nonmilitary assistance. 

(d) "Defense article" includes — 

(1) any weapon, weapons system, munition, aircraft, vessel, 
boat, or other implement of war ; 

22 use § 2402. 

604 The words "and the Foreign Assistance Act of 1969" were added by Sec. 308 of the 
FA Act of 1969. 

60"' The words "and the Foreign Assistance Act of 1969" were added by Sec, 308 of the 
FAAct of 1969. 

6«« Snbspction (d) was repealed by Sec. 303(a) of the FAAct of 1962. 
607 22 use § 403. 



133 



(2) any property, installation, commodity, material, equipment, 
supply, or goods used for the purposes of furnishing military 
assistance ; 

(3) any machinery, facility, tool, material, supply, or other item 
necessary for the manufacture, production, processing, repair, 
servicing storage, construction, transportation, operation, or use 
of any article listed in this subsection ; or 

(4) any component or part of any article listed in this sub- 
section; but 

shall not include merchant vessels or, as defined by the Atomic Energy 
Act of 1954, as amended (42 U.S.C. 2011), source material, byproduct 
material, special nuclear material, production facilities,^°^ utilization 
facilities, or atomic "weapons or articles involving Restricted Data.*^^^ 

(e) "Defense information" includes any document, writing, sketch, 
photograph, plan, model, specification, design, prototype, or other re- 
corded or oral information relating to any defense article or defense 
service, but shall not include Restricted Data as defined by the 
Atomic Energ}^ Act of 1954, as amended, and data removed from the 
Restricted Data category under section 142d of that Act. 

(f) "Defense service*' includes any service, test, inspection, repair, 
training,^'^^ publication, or technical or other assistance/'^^ or defense 
information used for the purposes of furnishing military assistance. 
"Training" includes formal or inform.al instruction of foreign students 
in the United States or overseas by officers or employees of the United 
States, contract technicians, contractors (including instruction at 
civilian institutions), or by correspondence courses, technical, educa- 
tional, or information publications and media of all kinds, training 
aid, orientation, training exercise, and military advice to foreign mili- 
tary units and forces. 

('g^Gi2 "Excess defeuF-e articles" means the quantity of defense arti- 
cles owned by the United States Government, and not procured in 
anticipation of military assistance or sales requirements, or pursuant 
to a militar7y' assistance or sales order, which is in excess of the 
Approved Force Acquisition Objective and Approved Force Reten- 
tion Stock of all Department of Defense Components at the time such 
articles are dropped from inventory by the supplying agency for 
delivery to countries or international organizations under this Act. 

(h) "Function" includes any duty, obligation, power, authority, 
responsibility, right, privilege, discretion, or activit}'. 

««Sfo. r>03fa)(1) of the FAAct of 1967 addpcl thp words "production facilities, utiliza- 
tion facilities. " and "or articles involving Restricted Data." 

«» Sec. 303(a)(2) of the FAAct of 1907 struck out the words "and formerly Re<5tricte<1 
Data" which appeared after the words "Restricted Data," and added the words beginning 
with ". and dp.ta r^^moved." 

Sec. 303(a) (3) (A) of the FAAct of 1967 struck out the words "includinc: orientation, 
training aid" which appeared after the word "training". The words "including orientation 
were added by Sec. 303 of the FAAct of 1963. Sec. 303(a)(3)(A) of the FAAct of 1967 
also struck out the words "including the transfer of limited quantities of defense articles 
for te-?t. evaluation, or standardization purposes," which appeared after the word 
"assistance." 

^ This sentence was added by Sec. 303(a) (3) (B) of the FAAct of 1967. 

Sec. 22(1) of the FAAct of 1973 amended subsection (g), which formerly read as 
follows : 

(g) "Excess defense articles" means the quantity of defense articles owned by the 
United States Government, and not procured In anticipation of military assistance or sales 
requirements, or pursuant to a military assistance or sales order, which is in excess of the 
mobilization reserve at the time such articles are dropped from inventory by the supplying 
agency for delivery to countries or international organizations under this Act. 



134 



(i)6i3 * * * [Repealed— 1973] 

(j) "Officer or employee" means civilian personnel and members of 
the Armed Forces of the United States Government. 

(k) "Services" include any service, repair, training of personnel, 
or technical or other assistance or information used for the purposes 
of furnishing nonmilitary assistance. 

(1) "Surplus agricultural commodity" means any agricultural com- 
modity or product thereof, class, kind, type, or other specification 
thereof, produced in the United States either publicly or privately 
owned, which is in excess of domestic requirements, adequate carry- 
over, and anticipated exports for United States dollars, as determined 
by the Secretary of Agriculture. 
^ (m)^i* "Value" means — 

(1) with respect to an excess defense article, the actual value 
of the article plus the gross cost incurred by the United States 
Government in repairing, rehabilitating, or modifying the article, 
except that for purposes of section 632(d) such actual value shall 
not be taken into account ; 

(2) with respect to a nonexcess defense article delivered from 
inventory to foreign countries or international organizations 
under this Act, the acquisition cost to the United States Govern- 
ment, adjusted as appropriate for condition and market value; 

(3) vdth respect to a nonexcess defense article delivered from 
new procurement to foreign countries or international organiza- 
tions under this Act, the contract or production costs of such 
article; and 

(4) with respect to a defense service, the cost to the United 
States Government of such service. 

Sec. 645.^^^ Unexpended Balances. — Unexpended balances of 
funds made available pursuant to this Act, the Mutual Security Act 
of 1954, as amended, or the Latin American Development Act, as 



Subsection (i), which related to mobilization reserve, was repealed by Sec. 22(2) of 
the FAAct of 1973. 

Sec. 22(3) of the FAAct of 1973 amended subsection (m), which formerly read as 
follows : 

"(m) 'Value' means, other than in section 657 of this Act — 

"(1) with respect to excess defense articles, the gross cost incurred by the United 
states Government in repairing, rehabilitating, or modifying such articles ; 

"(2) with respect to nonexcess defense articles delivered from inventory to countries 
or international organizations under this Act, the standard price in effect at the time 
such articles are dropped from inventory by the supplying agency. Such standard price 
shall be the same price (including authorized reduced prices) used for transfers or 
sales of such articles in or between the Armed Forces of the United States Govern- 
ment, or. where such articles are not transferred or sold in or between the Armed 
Forces of the United States, the gross cost to the United States Government adjusted 
as appropriate for condition and market value ; and 

"(3) with respect to nonexcess defense articles delivered from new procurement to 
countries or international organizations under this Act, the contract or production 
costs of such articles. 

Military assistance programs and orders shall be based upon the best estimates of stock 
status and prevailing prices : reimbursements to the supplying agency shall be made on the 
basis of the stock status and prices determined pursuant to this section. Notwithstanding 
the foregoing provisions of this section, the Secretary of Defense may prescribe regulations 
authorizins: reimbursements to the supplying agency based on negotiated prices for air- 
craft, vessels, plant pquipment and such other mn.ior items as he may specify : Provided, 
That such articles are not excess at the time such prices are negotiated : Provided further. 
That such prices are negotiated at the time firm orders are placed with the supplying 
agency. 

6'^5 22 use S 2404. Sec. 304 of the FAAct of 1963 amended. Section 645. which formerly 
read as follows : "TTnexpended balances of funds made available pursuant to this Act or 
the Mutual Security Act of 1954, as amended, are hereby authorized to be continued 
available for the genernl purposes for which appropriated, and may at any time be con- 
solidated, arid, in addition, may be consolidated with appropriations mad3 available for 
the same general purposes under the authority of this Act." 



135 



amended,^'^ are hereby authorized to be continued available for the 
general purposes for Vhich appropriated, and may at any time be 
consolidated, and, in addition, may be consolidated with appropria- 
tions made available for the same general purposes under the authority 

of this Act, . . <. -, . 4 . ^1 

Sec. 646.^'- Construction.— If any provision of this Act, or the 
application of any provision to any circumstances or persons shall be 
held invalid, the validity of the remainder of this Act, and of the 
applicability of such provision to other circumstances or persons shall 
not be aii'ected thereby. 

Sec. 647."^ Dependable Fuel Supply.— It is of paramount im- 
portance that long-range economic plans take cognizance of the need 
for a dependable supply of fuels, "which is necessary to orderly and 
stable development and growth, and that dependence not be placed 
upon sources which are inherently hostile to free countries and the 
ultimate well-being of economically underdeveloped countries and 
which might exploit such dependence for ultimate political domina- 
tion. The agencies of government in the United States are directed to 
work with other countries in developing plans for basing develop- 
ment programs on the use of the large and stable supply of relatively 
low cost fuels available in the free world. 

Sec. 648.'^'^ Special Authorization for Use of Foreign Cur- 
rencies. — Subject to the provisions of section 1415 of the Supple- 
mental Appropriation Act, 195o.''-^ the President is authorized, as a 
demonstration of good will on the part of the people of the United 
States for the Polish and Italian people, to use foreign currencies 
accruing to the United States Government under this or any other 
Act, for assistance on such terms and conditions as he may specify, in 
the repair, rehabilitation, im.provement, and maintenance of cemeteries 
in Italy serving as the burial place of members of the armed forces 
of Poland who die<l in combat in Italy during World War II. 

Sec. 649.^-^ Limitation on Aggregate Authorization for Use in 
Fiscal Year 1986. — Notwithstanding any other provisions of this Act, 
the aggregate of the total amounts authorized to be appropriated for 
use during the fiscal year 1966 for furnishing assistance and for ad- 
ministrative expenses under this Act shall not exceed $3,360,000,000. 

Sec. 650.^^2 Use United States Armed Forces. — The furnishing 
of economic, military, or other assistance under this Act shall not be 
construed as creating a new commitment or as affecting any existing 
commitment to use Armed Forces of the United States for the defense 
of any foreign country. 

Sec. 6.51.^-" Sale of Suoersonic Planes to Israel. — It is the sense 
of the Congress that the President should take such steps as may be 
necessary, as soon as practicable after the date of enactment of this 
section, to negotiate an agreement with the Government of Israel pro- 
viding for the sale by the United States of such number of supersonic 



Sec. 303(0) of the FAAct of 1965 substituted "the Latin American Development Act, 
as ampnded" for "Public Law 8G-735". 
^' 22 use § 2405. 
22 use § 2406. 

22 use § 2407. Sec. 648 was added by Sec. 303, of the FAAct of 1964, 
^-^ For text, see Dape 219. 

«2i22 use ? 240S. Sec. 649 was added bv Sec. 305fd) of the FAAct of 196.^. 
622 22 use § 2409. Sec. 650 was added bV Sec. .S03(b) of the FAAct of 1967. 
«-3 22 use § 2410. Sec. 651 was added by Sec. 303 of the FAAct of 1968. 



136 



planes as may be necessary to provide Israel with an adequate deterrent 
force capable of preventing future Arab aggression by offsetting 
sophisticated weapons received by the Arab States and to replace 
losses suffered by Israel in the 1967 conflict. 

Sec. 652.^2* Limitation Upon Exercise of Special Authorities. — 
The President shall not exercise any special authority granted to him 
under section 506(a), 610(a), or 614(a) of this Act unless the Presi- 
dent, prior to the date he intends to exercise any such authority, 
notifies the Speaker of the House of Representatives and the Com- 
mittee on Foreign Relations of the Senate in writing of each such 
intended exercise, the section of this Act under which such authority 
is to be exercised, and the justification for, and the extent of, the exer- 
cise of such authority. 

Sec. 653.^-^ Change in Allocation of Foreign Assistance. — 
(a) Xot later than thirty days after the enactment of any law appro- 
priating funds to carry out any provision of this Act (other than sec- 
tions 451 or 637), the President shall notify the Congress of each 
foreign country and international organization to which the United 
States Government intends to provide any portion of the funds under 
such law and of the amount of funds under that law, by category of 
assistance, that the United States Government intends to provide to 
eacli.®-^ 

(b) ^-■^ Notwithstanding any other provision of law, no military 
grant assistance, security supporting assistance, assistance under chap- 
ter 1 of part I of this Act, or assistance under part Y of this Act, may 
be furnished to any country or international organization in any fiscal 
year, if such assistance exceeds by 10 percent or more the amount of 
such military grant assistance, security supporting assistance, assist- 
ance under chapter 1 of part I of this Act, or assistance under part V 
of this Act, as the case may be, set forth in the report required by sub- 
section (a) of this section, unless — 

(1) the President reports to the Congress, at least ten days prior 
to the date on which such excess funds are provided, the country 

"s-iTTSC §2411. Sec. 304(a)(1) of the FAAct of 1971 amended Sec. 652. which was 
adder! by Sec. 8 of the Special Foreign Assistance Act of 1971. Sec. 652 formerly read as 
follows : 

"Sec. 652. Limitation Upon Additional Assistance to Cambodia. — The President shall 
not exercise any special authority granted to him under sections 506(a), 610(a), and 
614 fa > of this Act for the purpose of providing additional assistance to Cambodia, 
unless the President, at least thirty days prior to the date he intpnds to exeTise any 
such authority on behalf of Cambodia (for ten days prior to such date if the President 
certifies in writing that an emergency exists requiring immediate assistance to Cam- 
bodia), notifies the Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate in writing of each such intended exercise, the section 
of this Act under which such authority is to be exercised, and the justification for, and 
th** extent of. the exercise of such authority." 
«'-'^ 22 use § 241.3. Sec. 658 was added by Sec. .304(b) of the FAAct of 1971. 
«2« Pec. 21(1) of the FAAct of 1974 struck the balance of subsection (a) at this point. 
The stricken part read as follows : "Notwithstanding any other provision of law the United 
States Government shall not provide to any foreign country or international organization 
nnv funds under thnt law which exceeds by 10 per centum the amount of military grant 
assistance or security supporting assistance, as the case may be. which the President notified 
the Congress that the United States Government intended to provide that country or organi- 
zation under that Inw. unless the President (1) determines that it is in the security interests 
of tl'*^ Ignited Stntes that '^vnh country or organization receive funds in excess of the 
amount included in such notification for that country or orfranization. and (2) reports to 
Gonirress at least ten dpyc prior to the date on which such excess funds are to be provided 
to that country or organization, each such determination, including the name of the coun- 
try or organization to receive funds in excess of such per centum, tbp amount of fund's to 
eyees«! of th^t per centum which are to be provided, and the justification for providing 
the additional assistance." 

Spc. 21(2) of the FAAct of 1974 redesignated former subsection (b) as subsection (c) 
and added new subsection (b). 



137 



or organization to be provided the excess funds, the amount and 
category of the excess^ funds, and the justification for providing 
the excess funds ; and 

(2) in the case of military grant assistance or security support- 
ing assistance, the President includes in the report under para- 
graph (1) his determination that it is in the security interest of the 
United States to provide the excess funds. 
This subsection shall not apply if the excess funds provided in any 
fiscal year to any country or international organization for any cate- 
gory of assistance are less than $1,000,000. 

(c) ^-^ The provisions of this section shall not apply in the case of 
any law making continuing appropriations and may not be waived 
under the provisions of section 614(a) of this Act. 

Sec. 654.^29 Presidential Findings and Determinations.— (a) In 
any case in which the President is required to make a report to the 
Congress, or to any committee or officer of either House of Congress, 
concerning any finding or determination under any provision of this 
Act, the Foreign Military Sales Act, or the Foreign Assistance and 
Related Proo-rams Appropriation Act for each fiscal year, that finding 
or determination shall be reduced to writing and signed by the 
President.^^^ 

(b) No action shall be taken pursuant to any such finding or deter- 
mination prior to the date on which that finding or determination has 
been reduced to writing and signed by the President. 

(c) Each such finding or determination shall be published in the 
Federal Register as soon as practicable after it has been reduced to 
writing and signed by the President. In any case in which the Pres- 
ident concludes that such publication would be harmful to the national 
security of the United States, only a statement that a determination 
or finding has been made by the President, including the name and 
section of the Act under which it was made, shall be published. 

(d) No committee or officer of either House of Congress shall be 
denied any requested information relating to any finding or deter- 
mination which the President is required to report to the Congress, 
or to any committee or officer of either House of Congress, under any 
provision of this Act, the Foreign Military Sales Act, or the Foreign 
Assistance and Related Programs Appropriation Act for each fiscal 
year, even though such report has not yet been transmitted to the 
appropriate committee or officer of either House of Congress. 

Sec. 655.^^^ Limitations Upon Assistance to or for Cambodia. — 
(a) Notwithstanding any other provision of law, no funds authorized 
to be appropriated by this or any other law may be obligated in any 
amount in excess of $377,000,000 for the purpose of carrying out 
directly or indirectly any economic or military assistance, or any oper- 
ation, project, or program of any kind, or for providing any goods, 
supplies, materials, equipment, services, personnel, or advisers in, to. 

Sec. 21(2) of the FAAct of 1974 redesignated this former subsection (b) as subsec- 
tion (c). 

«2o 22 use § 2414. Sec. 654 was added by Sec. 304(b) of the FAAct of 1971. 

For other reports required to he submitted to Congress, see Reports to Congress Index. 
6f 22 use 2415. Sec. 655 was added by Sec. 304(b) of the FAAct of 1971. 
000'"' 39(a)(1) of the FAAct of 1974 substituted "$377,000,000" in lieu of "$341,000,- 



138 



for, or on behalf of Cambodia during the fiscal year ending June 30, 
1975. Of that sum, there shall be available no more than $200,000,000 
for military assistance. In addition to such $377,000,000, defense arti- 
cles and services may be ordered under section 506 of this Act for Cam- 
bodia in an amount not to exceed $75,000,000 in fiscal year 1975.^^^ 

(b) In computing the $377,000,000^^4 limitation on obligation 
authority under subsection (a) of this section in fiscal year 1975,*^^ 
(1) there shall be included in the computation the value of any goods, 
supplies, materials, or equipment provided to, for, or on behalf of 
Cambodia in such fiscal year by gift, donation, loan, lease, or otherwise, 
and (2) there shall not be included in the computation the value of any 
goods, supplies, materials or equipm^ent attributable to the operations 
of the Armed Forces of the Republic of Vietnam in Cambodia. For the 
purpose of this subsection, "value" means the fair market value of any 
goods, supplies, materials, or equipment provided to, for, or on behalf 
of Cambodia but in no case less than 33% per centum of the amount the 
United States paid at the time such goods, supplies, materials, or 
equipment were acquired by the United States. 

(c) No funds may be obligated for any of the purposes described 
in subsection (a) of this section in, to, for, or on behalf of Cambodia 
in any fiscal year beginning after June 30, 1972, unless such funds have 
been specifically authorized by law enacted after the date of enactment 
of this section. In no case shall funds in any amount in excess of the 
amount specifically authorized by law for any fiscal year be obligated 
for any such purpose during such fiscal year. 

(d) The provisions of subsections (a) and (c) of this section shall 
not apply with respect to the obligation of funds to carry out combat 
air operations over Cambodia. 

(e) After the date of enactment of this section, whenever any request 
is made to the Congress for the appropriation of funds for use in, 
for, or on behalf of Cambodia for any fiscal year, the President shall 
furnish a written report to the Congress explaining the purpose for 
which such funds are to be used in such fiscal year.^" 

(f) The President shall submit to the Congress within thirty days 
after the end of each quarter of each fiscal year, beginning with the 
fiscal year which beg-ins July 1, 1971, a written report showing the 
total amount of funds obligated in, for or on behalf of Cambodia dur- 
ing the preceding quarter by the United States Government, and shall 
include in such report a general breakdown of the total amount obli- 
gated, describing the different purposes for which such funds were 
obligated and the total amount obligated for such purpose except that 
in the case of the first two quarters of the fiscal year beginning July 1, 
1971, a single report m.ay be submitted for both such quarters and 
such report may be computed on the basis of the most accurate esti- 



«''3Spo. 8n(a)(2) of tbp FAAft of 1974 snbstitnted "1975. Of that snm thpre shall be 
available no more than $200,000,000 for military assistance. Tn addition to 'such .'R377.000 - 
000. defense articles and services may be ordered under section 500 of tliis Act for Cam- 
bodia in an amount not to exceed $75,000,000 in fiscal vear 1975" in lieu of "1972" 
QQQM^^^- 30(a)(3) of the FAAct of 1974 substituted '"$377,000,000' in lieu of $341,000- 

e-'^s Sec. 39(a) (4) of the PAAct of 1974 substituted "1975" in lieu of "1972" 
63»Sec. 12(0) of the ForeiRn Assistance Act of 1973 provides: "(c) Sec. 655(c) shall not 
iJJ^/^,^^ assistance authorized to be furnished under any provision of law for fiscal year 

637 other reports required to be submitted to Congress, see Reports to Congress, 



139 



mates the President is able to make taking into consideration all infor- 
mation available to him.^^^ 

(g) Enactment of this section shall not be construed as a commit- 
ment by the United States to Cambodia for its defense. 

Sec. 658.'^39 Limitations on United States Personnel and Person- 
nel Assisted by United States in Cambodia.— The total number of 
civilian officers and employees of executive agencies of the United 
States Government who are citizens of the United States and of mem- 
bers of the Armed Forces of the United States (excluding such mem- 
bers while actually engaged in air operations in or over Cambodia 
which originate outside Cambodia) present in Cambodia at any one 
time shall not exceed two hundred. The United States shall not, at 
any time, pay in whole or in part, directly or indirectly, the compensa- 
tion or allowances of more than eighty-five individuals in Cambodia 
who are citizens of countries other than Cambodia or the United States. 
For purposes of this section, "executive agency of the United States 
Government" means any agency, department, board, wholly or partly 
owned corporation, instrumentality, commission, or establishment 
wdthin the executive branch of the United States Government. This 
section shall not be construed to apply with respect to any individual 
in Cambodia who (A) is an employee or volunteer worker of a volun- 
tary private, nonprofit relief organization or is an employee or vol- 
unteer worker of the International Committee of the Eed Cross, and 
(B) engages only in activities providing humanitarian assistance in 
Cambodia.^'*^ 

Sec. 657.^" Annual Foreign A^ssistance Report. — (a) In order 
that the Congress and the A^merican people may be better and more 
currently informed regarding the volume and cost of assitance ex- 
tended by the United States Government to foreign countries and 
international organizations, and in order that the Congress and the 
American people may be better informed regarding the sale of arms 
to foreign countries and international organizations by private in- 
dustry of the United States, not later than December 31 of each 
year the President shall transmit to the Congress an annual report, 
for the fiscal year in which the report is transmitted, showing — 

(1) the aggregate dollar value of all foreign assistance pro- 
vided by the United States Government by any means to all for- 
eign countries and international organizations, and the aggregate 
dollar value of such assistance by category provided by the United 
States Government to each such country and organization, dur- 
ing that fiscal year ; 

(2) the total amounts of foreign currency paid by each foreign 
country or international organization to the United States Gov- 
ernment m such fiscal year, what each payment was made for, 
whether any portion of such payment was returned by the United 

638 For other reports required to be submitted to Congress, see Reports to Congress, 
Index. 

6® 22 use 2417. Sec. fi57 was added by Sec. 304(b) of the FAAct of 1971. 
This sentence was added by Sec. 39(b) of the FAAct of 1974. 

22 use 2417. Sec. 23 of the FAAct of 1973 reenacted Sec. 657 to this point ; amended 
paragraph (3) subsection (a), which formerly read as follows: "(3) the aggregate 
dollar value of all arms, ammunitions, and other implements of war, and the aggregate 
dollar value of each category of such arms, ammunitions, and implements of war, exported 
under any export license, to all foreign countries and international organizations, and to 
eacn such country and organization, during that fiscal year; and"; added paragraph (4), 
and renumbered former paragraph (4) as paragraph (5). 

^*^S;J1^^1^^ t^^e FAAct of 1971 provides : "The provisions of this subsection and 

section 657 of such Act, as added by subsection (b) of this Act, shall apply with respect to 
each fiscal year commencing on or after July 1, 1971." 



140 



States Government to the country or organization from which the 
payment was obtained or whether any such portion was trans- 
ferred by the United States Government to another foreign 
country or international organization, and, if so returned or 
transferred, the kind of assistance obtained by that country or 
organization with those foreign currencies and the dollar value 
of such kind of assistance ; 

(3)^^^ the aggregate dollar value of all weapons, weapons sys- 
tems, munitions, aircraft, military boats, military vessels, and 
other implements of war, and the aggregate dollar value of each 
category of such implements of war, exported under any export 
license, to all foreign countries and international organizations 
and to each such country and organization, during that fiscal 
year; 

(4^641 pi| exports of significant defense articles on the United 
States Munitions List to any foreign government, international 
organization, or other foreign recipient or purchaser, by the 
United States under this Act or any other authority, or by any 
individual corporation, partnership, or other association doing 
business in the United States, including but not limited to, full 
information as to the particular defense articles so exported, the 
particular recipient or purchaser, the terms of the export, includ- 
ing the selling price, if any, and such other information as may 
be appropriate to enable the Congress to evaluate the distribution 
of United States defense articles abroad ; and 

(5)^^^ such other matters relating to foreign assistance provided 
by the United States Government as the President considers ap- 
propriate, including explanations of the information required 
under clauses (1) through (4) of this subsection. 

(b) All information contained in any report transmitted under this 
section shall be public information. Plowever, in the case of any item of 
information to be included in any such report that the President, on an 
extraordinary basis, determines is clearly detrimental to the security 
of the United States, he shall explain in a supplemental report why 
publication of each specific item would be detrimental to the security 
of the United States. A supplemental report shall be transmitted to 
the Congress at the same time that the report is transmitted. 

(c) If the Congress is not in session at the time a report or supple- 
mental report is transmitted to the Congress, the Secretary of the 
Senate and the Clerk of the House of Representatives shall accept the 
report or supplemental report ^^"^ on behalf of their respective Houses 
of Congress and present the report or supplemental report to the 
two Houses immediately upon their convening. 

( d ) For the purposes of this section — 

(1) "foreign assistance" means any tangible or intangible item 
provided by the United States Government under this or any other 
law to a foreign country or international organization, including 
but not limited to, anj^ training, service, or technical advice, any 
item of real, personal, or mixed property, any a o-ricultural com- 
modity. United States dollars, and any currencies owned by the 
United States Government of any foreign country; and 

Sec. 23 of the FAAct of 1973 substituted "supplemental report" in lieu of "supple- 
ment to any report" In the last sentence of subsection (b). and substituted "supplemental 
report" In lieu of "supplement" each time it appeared In subsection (c). 



141 



(2) "provided by the United States Government" includes, but 
is not limited to, foreign assistance provided by means of gift, 
loan, sale, credit, or guaranty/'^* 
Sec. 658.^^^ Limitation on Use of Funds. — (a) Except as other- 
wise provided in this section, none of the funds appropriated to carry 
out the provisions of this Act or the Foreign Military Sales Act shall 
be obligated or expended until the Comptroller General of the United 
States certifies to the Congress that all funds previously appropriated 
and thereafter impounded during the fiscal year 1971 for programs 
and activities administered by or under the direction of the Depart- 
ment of Agriculture, the Department of Housing and TTrban Devel- 
opment, and the Department of Health, Education, and Welfare have 
been released for obligation and expenditure. 

(b) The provisions of this section shall not apply — 

(1) to funds being withheld in accordance with specific require- 
ments of law; and 

(2) to appropriations obliirated or expended prior to April 30, 
1972. 

Sec. 659.^^*^ Access to Certain Military Bases Abroad. — Xone of 
the funds authorized to be appropriated for foreign assistance (includ- 
ing foreign military sales, credit sales, and guaranties) under this Act 
may be used to provide any kind of assistance to any foreign country 
in which a military base is located if — 

(1) such base was constructed or is being maintained or oper- 
ated with funds furnished by the United States ; and 

(2) personnel of the United States carry out military opera- 
tions from such base ; 

unless and until the President has determined that the government of 
such country has, consistent with security authorized access, on a reg- 
ular basis, to bona fide news media correspondents of the United 
States to such military base. 

Sec. 660.^^^ Prohibiting' Police Training. — (a) On and after 
July 1, 1975, none of the funds made available to carry out this Act, 
and none of the local currencies geiieratecl under this Act, shall be used 
to provide training or advice, or provide any financial support, for 
police, prisons, or other law enforcement forces for any foreign gov- 
ernment or any program of internal intelligence or surveillance on 
behalf of any foreign government within the United States or abroad, 
(b) Subsection (a) of this section shall not apply — 

(1) with respect to assistance rendered under section 515(c) of 
the Omnibus Crime Control and Safe Streets Act of 19f^8.'''^s with 
respect to any authority of the Drug Enforcement Administra- 
tion or the Federal Bureau of Investigation which relates to 
crimes of the nature which are unlawful under the laws of the 
United States, or with respect to assistance authorized under 
section 482 of this Act ; or 

Sec. 23 of the FAAct of 1973 deleted paragraph (3) of subsection (d), -which read: 
"(3) 'value' means value at the time of transfer except that in no case shall any commodity 
or article of equipment or mnterial be considered to have a value less thnn one-third of the 
amount the United States Government paid at the time the commoditv or article was 
aconired by the United States Government." 

«*5 22 use 2418. Sec. 6,i8 was added by Sec. 304(b) of the FAAct of 1971. 
e*«22 use 2419. Sec. 659 was added by Sec. 29(a) of the FAAct of 1974. 

22 use 2420. Sec. 660 was added by Sec. 30(a) of the FAAct of 1974. 
"8 Public Law 90-351 ; 82 Stat. 197, approved June 19, 1968. 



142 



(2) to any contract entered into prior to the date of enactment 
of this section with any person, organization, or agency of the 
United States Government to provide personnel to conduct, or 
assist in conducting, any such program. 
Notwithstanding clause (2), subsection (a) shall apply to any re- 
newal or extension of any contract referred to in such paragraph 
entered into on or after such date of enactment. 

Sec. 661.^^^ Reimbursable Development Programs. — The Presi- 
dent is authorized to use up to $1,000,000 of the funds made available 
for the purposes of this Act in the fiscal year 1975, $2,000,000 in the 
fiscal year 1976, and $2,000,000 in the fiscal year 1977,«;o to work 
with friendly cou.ntries, especially those in which United States 
development programs have been concluded or those not receiving as- 
sistance under part I of this Act, in (1) facilitating open and fair ac- 
cess to natural resources of interest to the United States and (2) stim- 
ulation of reimbursable aid programs consistent with part I of this 
Act. Any funds used for purposes of this section m^ay be used notwith- 
standing any other provision of this Act. 

Sec. 662.^^^ Limitation on Intelligence Activities. — (a) Xo funds 
appropriated under the authority of this or any other Act may be ex- 
pended by or on behalf of the Central Intelligence Agency for opera- 
tions in foreign countries, other than activities intended solely for 
obtaining necessary intelligence, unless and until the President finds 
that each such operation is important to the national security of the 
United States and reports, in a timely fashion, a description and scope 
of such operation to the appropriate committees of the Congress, 
including the Committee on Foreign Eelations of the United States 
Senate and the Committee on Foreign Affairs of the United States 
House of Representatives.^^- 

(b) The provisions of subsection (a) of this section shall not apply 
during military operations initiated by the United States under a 
declaration of war approved by the Cono^ress or an exercise of powers 
by the President under the War Powers Resolution. 

Sec. 663.^^^ Exchanges of Certain Materials. — (a) Notwithstand- 
ing any other provision of law, whenever the President determines it 
is in the United States national interest, he shall furnish assistance 
under this Act or shall furnish defense articles or services under the 
Foreign ^lilitary Sales Act ^'^^ pursuant to an agreement with the 
recipient of such assistance, articles, or services which provides that 
such recipient may only obtain such assistance, articles, or services 
in exchange for any necessary or strategic raw material controlled by 
such recipient. For the purposes of this section, the term "necessary 
or strategic raw material" includes petroleum, other fossil fuels, 
metals, minerals, or any other natural substance which the President 
determines is in short supply in the United States. 

(b) The President shall allocate any necessary or strategic raw ma- 
terial transferred to the United States under this section to any appro- 
priate agency of the United States Government for stockpiling, sale 
transfer, disposal, or any other purpose authorized by law. 

6)0 22 U?n 2-121. Spc. Ofil a^^florl bv Sop. HI of the FA Art of 1974. 

Sec. 816 of Public Law 04-161 fSH Stat. 849) substitnted the worcls to this point 
coinmenciner Tvith "in the fiscal year 1975, . . ." In lieu of "in each of the fiscal years 
1975 and 1976." 

22 use 2422. Sec. 662 was adfled by Sec. .82 of the FA Act of 1974. 
"'2 For other reports reauired to be submitted to Congress, see Reports to Congress, 
Index. 

«53 22 use 2423. Sec. 663 was added by Sec. 32 of the FAAct of 1974. 
^ For text, see page 253. 



143 



(c) Funds received from any disposal of materials under subsection 
(b) shall be deposited as miscellaneous receipts in the United States 
Treasury. . ^ ^ 

Sec. 661.^'^ Waiver of Prohibition Against Assistance to Coun- 
tries Engaging in Certain Trade. — Any provision of this Act which 
proliibits assistance to a country because that country is engaging in 
trade with a designated country, or because that country permits 
ships or aircraft under its registry to transport any equipment, ma- 
terials, or commodities to or from such designated country, may be 
waived by the President if he determines that such waiver is in the 
national interest and reports such determination to the Congress.^^^ 

Sec. 665.*^^* Transition Provisions for Interim Quarter.— Theie 
are authorized to be appropriated for the period July 1, 1976 through 
September 30. 1976, such amounts as may be necessary to conduct pro- 
grams and activities for vrhich funding was authorized for fiscal year 
1976 by the International Development and Food Assistance Act of 
1975. in accordance with the provisions applicable to such programs 
and activities for such fiscal year, except that the total amount appro- 
priated for such period shall not exceed one-fourth of the total amount 
authorized to be appropriated for the fiscal year 1976 for such pro- 
grams and activities. 

Sec. 666.*^'^ Biscrimination Against United States Personnel.— 
(a) The President shall not take into account, in assigning officers and 
cm])loyecs of tlie United States to carry out any economic development 
assistance programs funded under this Act in any foreign country, the 
race, religion, national origin, or sex of any such officer or employee. 
Such assignments shall be made solely on the basis of ability and rel- 
evant experience. 

(b) Effective six months after the date of enactment of the Inter- 
national Development and Food Assistance Act of 1975, or on such 
earlier date as the President may determine, none of the funds made 
available under this Act may be used to provide economic develop- 
ment assistance to any country which objects to the presence of any 
officer or employee of the United States who is present in such coun- 
try for the purpose of carrying out any program of economic develop- 
ment assistance authorized by the provisions of this Act on the basis 
of the race, religion, national origin, or sex of such officer or employee. 

(c) The Secretary of State shall promulgate such rules and regula- 
tions as he may deem necessary to carry out the provisions of this 
section. 

Sec. 667.^^^ Operating Expenses. — Xothing in this Act is intended 
to preclude the Committees on Appropriations, in appropriation leg- 
islation, from setting a ceilinc: on operating expenses of the agency 
primarily responsible for administering part I and limiting the avail- 
ability of other sums therefor. 



6.-5 22 rsC 2424. «oc. ^04 was added by Sec. 33 of the FAAct of 1974. 
«'« Spp footnote 2.'^T. pace 60. 

657 22 rsc 242.5. Sec. 6Ro was added bv Sec. 317 of Public Law 04-161 (8f) Stat. 849). 
63S02 T'sc 2426. Sec. 666 was added bv Sec. 318 of Public Law 94-161 (89 Stat. 849). 
«58 22 use 2427. Sec. 667 was added by Sec. 319 of Public Law 94-161 (89 Stat. 849). 
65-998 — 76 11 



144 

PART IV "^'^ * * [Repealed— 1962] 
PART V 

Chapter 1 — Indochina Postwar Reconstruction 



The Foreign Assistance Act of 1974 did not amend Pai*t V to 
provide authorizations for economic aid to Indochina for fiscal 
year 1975. Rather, sections 36 through 40 of the Foreign As- 
sistance Act of 1974 provided fiscal year 1975 authorizations for 
the Indochina countries and allocated economic assistance to 
specific programs for each country. For text of Act, see page 149. 



Sec. 801,^°2 General Authority. — The President is authorized to 
furnish, on such terms and conditions as he may determine, assistance 
for relief and reconstruction of South Vietnam., Cambodia, and Laos, 
including especially humanitarian asistance to refugees, civilian w'ar 
casualties, and other persons disadvantaged by hostilities or condi- 
tions related to those hostilities in South Vietnam, Cambodia, and 
Laos. No assistance shall be furnished under this section to South 
Vietnam unless the President receives assurances satisfactory to him 
that no assistance furnished under this part, and no local currencies 
generated as a result of assistance furnished under this part, will be 
used for support of police, or prison construction and administration, 
within South Vietnam. 

Sec. 802.^^2 Authorization. — There are authorized to be appropri- 
priated to the President to carry out the purposes of this chapter, in 
addition to funds otherwise available for such purposes, for the fiscal 
1974 not to exceed $504,000,000,^^^ which amount is authorized to re- 
main available until expended. 

Sec. 803.^^^ Assistance to South Vietnamese Children. — (a) It is 
the sense of the Congress that inadequate provision has been made (1) 
for the establishment, expansion and improvement of day care centers, 
orphanages, hotels, school feeding programs, health and welfare pro- 
grams, and training related to these programs which are designed for 
the benefit of South Vietnamese children, disadvantaged by hostilities, 
in Vietnam or conditions related to those hostilities, and (2) for the 
adoption by United States citizens of South Vietnamese children who 
are orphaned or abandoned, or whose parents or sole surviving parent, 
as the case may be, has irrevocably relinquished all parental rights, 
particularly children fathered by United States citizens. 

(b) The President is, therefore, authorized to provide assistance, on 
terms and conditions he considers appropriate, for the purposes de- 
scribed in clauses (1) and (2) of subsection (a) of this section. Of 
the funds appropriated pursuant to section 802 for fiscal year 1974, 

Sec. 401 of Hie FAAct of 1962 repealed Part IV of the FAAct of 19fil, ns amended. 
(rcLiting to amendments to other hiv»'s) and provided that the "repeal shall not be deemed 
to affect amendmeTits contained in «uch part". 

«^ Part V was added bv Sec. 24 of the FAAct of 1973. 

««2 22 use 24.'^1. Sec. 801 was added by Sec. 24 of the FAAct of 1973. 
22 use 2432. Sec. 802 was added by Sec. 24 of the FAAact of 1973. 

68' FA Appropriation Act, 1975: $440,000,000. Second Supplemental Appropriations Act, 
1974. (Public Law 93-30o ; June 8, 1974) : "an additional amount for 'Indochina postwar 
reconstruction assistance'. .$49,000,000". 

««'>22 use 2433. Sec. 803 was added bv Sec. 24 of the FAAct of 1973. 



145 



$5,000,000, or its equivalent in local currency, shall be available until 
expended solely to carry out this section. Xot more than 10 per centiun 
of the funds made available to carry out this section may be expejided 
for the purposes referred to in clause (2) of subsection ( a) . Assistance 
provided under this section shall be furnished, to the maximum extent 
practicable, under the auspices of and by international agencies or 
private voluntary agencies. 

Sec. 804.°^'' Center for Plastic and Reconstructive Surgery in 
Saigon. — Of the funds appropriated pursuant to section S02 for the 
fiscal year 1974, not less tlian $712,000 shall be available solely for 
furnishing assistance to the Center for Plastic and Reconstructive 
Surgery in Saigon. 

Sec. 805.^^' Authority. — All references to part I "\vhother liereto- 
fore or hereafter enacted, shall be deemed to be references also to this 
part unless otherwise specifically provided. The authorities available 
to administer part I of this Act shall be available to administer pro- 
grams authorized in this Part. 

Sec. 806.^^^^ Population, Narcotics, International Humanitarian 
and Regional Programs. — The provisions of sections '36(c), 38, 39, 
and 40 of the Foreign Assistance Act of 1974 shall not apply to: 
(1) funds obligated for purposes of title X of chapter 2 of part I 
(programs relating to population growth) ; (2) funds made available 
under section 482 (programs relating to narcotics control) : (3) funds 
made available for humanitarian assistance through international or- 
ganizations; or (4) funds obligated for regional programs. 

PART VI 

Chapter 1 — Assistance to the Middle East 

Sec. 901.^"" Statement of Policy. — The Congress recognizes that a 
peaceful and lasting resolution of the divisive issues that have con- 
tributed to tension and conflict between nations in the Middle East 
is essential to the security of the United States and the cause of world 
peace. The Congress declares and finds that the United States can 
and should play a constructive I'ole in securing a just and durable 
peace in the Middle East by facilitating increased understanding be- 
tween the Arab nations and Israel, and by assisting the nations in 
the area in their efforts to achieve economic progress and political 
stability, which are the essential foundations for a just and durable 
peace. It is the sense of Congress that United States assistance pro- 
grams in the Middle East sliould be designated to promote mutual 
respect and security among the nations in the area and to foster a 
climate conducive to increased economic development, thereby con- 
tributing to a community of free, secure, and prospering nations in 
the Middle East. 

It is further the sense of Congress that none of the funds authorized 
by this Act should be provided to any nation which denies its citizens 
the right or opportunity to emigrate. 

««8 22 use 2434. Sec. S04 wns added by Sec. 24 of the FAAct of 1973. 

22 use 24.31 note. Sec. 805 was added by Sec. 24 of the FAAct of 1973. 
^ 22 use 2435. Sec. 806 was added bv Sec. 41 of the FAAct of 1974. 

Sec. 42 of the FAAct of 1974 nddod Part VT. 
«™ 22 use 2441. Sec. 901 was added by See. 42 of the FAAct of 1974. 



146 



Sec. 902.®'^ Allocations. — (a.) Of the funds appropriated to carry 
out chapter 2 of part II of this Act during the fiscal year 1975, not 
to exceed $100,000,000 may be made available for military assistance in 
the Middle East. 

(b) Of the funds appropriated to carry out chapter 4 of part II of 
this Act during the fiscal year 1975, not to exceed $652,000,000 may be 
made available for security supporting assistance in the Middle East. 

(c) Of the aggregate ceiling on credits and guaranties established by 
section 31 (b) of the Foreign Military Sales Act during the fiscal year 
1975, not to exceed $330,000,000 shall be available for countries in the 
Middle East- 
Sec. 903.^"^ (a) Special Requirements Fund. — There are author- 
ized to be appropriated to the President for the fiscal year 1975 not to 
exceed $100,000,000 to furnish assistance under part I of this Act to 
meet special requirements arising from time to time in carrying out the 
purposes of this part, in addition to funds otherwise available for such 
purposes. The funds authorized to be appropriated by this section 
shall be available for use by the President for assistance authorized by 
such part in accordance with the provisions applicable to the furnish- 
ing of such assistance. Such funds are authorized to remain available 
until expended. 

(b) The President may only obligate or expend, for each foreign 
country or international organizations, funds authorized under this 

section — 

(1) after he reports to the Speaker of the House of Representa- 
tives and the Committee on Foreign Relations and the Committee 
on Appropriations of the Senate concerning (A) the name of such 
foreign country or international organizations, (B) the amount 
of such funds to be made available to such country or organiza- 
tion, and (C) the purpose for which such funds are to be made 
available to such country or organization ; and 

(2) unless the Congress, within thirty calendar days after re- 
ceiving any report under paragraph (1) , adopts a concurrent reso- 
lution stating in substance that it does not favor the provisions of 
the report provided by clauses (A), (B), and (C) of paragraph 
(1). 

(c) Of the amount authorized under subsection (a), not less than 
$6,000,000 shall constitute a contribution by the United States toward 
the settlement of the deficit of the United Nations Relief and Works 
Agency for Palestine Refugees in the Middle East, if the President 
determines that a reasonable number of other countries will contribute 
a fair share toward the settlement of such deficit within a reasonable 
period of time after the date of enactment of the Foreign Assistance 
Act of 1974. In determining such fair share, the President shall take 
into consideration the economic position of each such country. Such 
$6,000,000 shall be in addition to any other contribution to such Agency 
by the United States pursuant to any other provision of law. 



«^ 22 use 2442. Sec. 902 was added by Sec. 42 of the FAAct of 1974. 
C72 22 UPC 2443. Sec. 903 was added by Sec. 42 of the FAAct of 1974. 
«'3 FA Appropriation Act, 1975 : .$100,000,000. 



b. International Development and Food Assistance Act of 1975 

Partial Text of Public Law 94-161 [H.R. 9005], 89 Stat. 849, 
approved December 20, 1975 



Note. — Except for the provisions noted below, the Interna- 
tional Development and Food Assistance Act of 1975 consists of 
amendments to the FAAct of 19G1 and the AgTicultural Trade 
Development and Assistance Act of 1954 (P.L. 480). For texts 
see pages 1 and 284. 

f 



AN ACT To authorize assistance for disaster relief and rehabilitation, to provide 
for overseas distribution and production of agricultural commodities, to amend 
the Foreign Assistance Act of 1961, and other purposes. 

Be it enacted bij the Senate and House of Representatives of the 
United States of America in Congress assemhled „ That this Act may 
be cited as the 'Tnternational Development and Food Assistance Act 
of 1975". 

******* 

REPORT REGARDING IMPTJ=:.A[EXTATIOX OF RECOMMENDATIONS OF WORLD 

FOOD CONFERENCE 

Sec. 213. Tiie Congress calls upon the President to strengthen the 
efforts of the United States to carry out the recommendations of the 
World Food Conference. The President shall submit a detailed report 
to the Congress not later tlum November 1, 197(), with respect to tlie 
steps he has taken to carry out the recommendations of the World 
Food Conference, including steps to fulfill the commitment of the 
United States and to encourage other nations to increase their partici- 
])ation in efforts to improve the food security of the poorest portion of 
the world's population. 

^ ^ ^ ^ ^ sfc ^ 

international organizations AND FROGRAMS 

Sec. 313. (a) * - * 

(b) Section 54 of the Foreign Assistance Act of 1974 is amended 
by striking out "part III" and inserting in lieu thereof "part I". 

^ ^ ^ jft sfc sfc ^ 

LIMITATION ON ASSISTANCE TO CHILE 

Sec. 320. Xotwitlistanding any other provision of law, the total 
amount of economic assistance (including but not limited to housing 

(147) 



148 



gTiarantios and sales under title T of the Agricultural Trade Develop- 
ment and Assistance Act of 1954) that may be made available to Chile 
may not exceed $90,000,000 during the fiscal year 1976. 

SETTLEMENT OF DEBT OWED THE UNITED STATES 

Sec. 3-21. Xo debt owed to the United States by any foreign country 
with. res])ect to the payment of any loan made under any program 
funded imder this Act ma}^ be settled in an amount less than the full 
amount of such debt unless the Congress by concurrent resolution 
approves of such settlement. 

rARTICirATION BY OTHER COUNTRIES IN PROVIDING ASSISTANCE TO 
ISRcVEL OR EGYPT 

Sec 322. It is the sense of the Senate that the President should 
attempt to negotiate an equitable share of participation by the coun- 
tries of "Western Europe, Japan, and the United Nations in providing 
assistance to Israel or Egypt. 



c. Foreign Assistance Act of 1974 

Partial Text of Public Law 93-559 [S. 3394], 88 Stat. 1795, approved December 30, 

1974 



Note. — Except for the provisions noted below, the FAAct of 
1974 consists of amendments to the FAAct of 1961, the Foreign 
Military Sales Act, and the 1971 Act to amend the FMS Act. 



AX ACT To amend the Foreign Assistance Act of 1961, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America, in Congress asscynhled. That this Act may be 
cited as the "Foreign Assistance Act of 1971:-'. 

* 4: ♦ ♦ « * « 

CEILTXG ox rERTILIZERS TO SOUTH VIETNAM 

Sec. -3.^ (a) None of the moneys made available under the Foreign 
Assistance Act of 1901 or the Foreign Assistance Act of 1974 may be 
used, beginning on the date of enactment of this section, during fiscal 
year 1975 to procure agricultural fertilizers for, or to provide such 
fertilizers to. South Vietnam. 

(b) During eacli fiscal year after fiscal year 1975, of the total amount 
obligated or expended for such fiscal year under the Foreign Assist- 
ance Act of 1961 to procure agricultural fertilizers for, or to provide 
such fertilizers to, foreign countries, not m.ore than one-third of such 
amount may be obligated or expended to procure such fertilizers for, 
or provide such fertilizers to, South Vietnam. 

* * « * :is * * 

REVIEW OE MILITARY ASSISTANCE RROGILVM 

Sec. 17.- (a) It is the sense of Congress that the policies and pur- 
poses of tiie military assistance program conducted under chapter 2 
of part II of the Foreign Assistance Act of 1961 should be reexamined 
in light of changes in world conditions and the economic position of 
the United States in relation to countries receiving such assistance; 
and that the program, except for military education and training 
activities, should be reduced and terminated as rapidly as feasible con- 
sistent with the security and foreign policy requirements of the United 
States. 

(b) In order to give effect to the sense of Congress expressed in 
subsection (a), the President is directed to submit to the first session 
of the 94th Congress a detailed plan for the reduction and eventual 
elimination of the present military assistance program. 



» 22 use 2175a. 
«22 use 2311 DOte. 



(149) 



150 



******* 

LIMITxVTION UPOX ASSISTAXCE TO OR FOR CHILE 

Sec. 25.3 Xotwithstanding an}' other provision of law, the total 
amount of assistance that may be made available for Chile mider the 
Foreign Assistance Act of 1961, and the Foreign Military Sales Act 
during fiscal jq^it 1975, may not exceed $25,000,090, none of which 
may be made available for the purpose of providing military assist- 
ance (including security supporting assistance, sales, credit sales, or 
guaranties or the furnishing by any means of excess defense articles 
or items from stockpiles of the Department of Defense) . 

LIMITATION ON MILITARY ASSISTANCE AND EXCESS DEFENSE ARTICLES TO 

KOREA 

Sec. 26.* (a) The aggregate amount of — 

(1) funds obligated or reserved for military assistance, includ- 
ing supply operations, under chapter 2 of part II of the Foreign 
Assistance Act of 1961 ; 

(2) the acquisition cost of excess defense articles, if any, or- 
dered under part II of the Foreign Assistance Act of 1961 and 
not charged against appropriations for military assistance ; 

(3) credits, including participations in credits, extended pursu- 
ant to section 23 of the Foreign Military Sales Act ; and 

(4) the principal amount of loans guaranteed pursuant to sec- 
tion 24 (a) of the Foreign Military Sales Act ; 

with respect to South Korea shall not exceed $145,000,000 for fiscal 
year 1975 until the President submits a report to the Congress after the 
date of enactment of this Act stating that the government of South 
Korea is making substantial progress in the observance of interna- 
tionally recognized standards of human rights. 

(b) After the submission of the report under subsection (a), the 
aggregate amount described in paragi-aphs (1), (2), (3), and (4) of 
such subsection with respect to South Korea shall not exceed $165,000,- 
000 for fiscal year 1975. ^ 

(c) The provisions of section 506 and section 614 of the Foreign 
Assistance Act of 1961, or of any other law, may not be used to exceed 
the limitation under subsection (a) or (b). 

LIMITATION ON ASSISTANCE FOR INDIA 

Sec. 27.^ The total amount of assistance provided under the Foreign 
Assistance Act of 1961 and of credit sales made or guaranteed under 
the Foreign Military Sales Act for India shall not exceed $50,000,000 
in fiscal year 1975. 

FAMINE OR DISASTER RELIEF 

Sec. 28.^ (a) * * * 

(b) Of the funds appropriated to carry out section 639 of the For- 
eign Assistance Act of 1961, during fiscal year 1975 not less than 



»22 TTSC 2370 note. 

*22 use 2370 note. 

B22 use S.370 note. 

»22 use 2399 note. 



151 



$25,000,000 shall be made available to Cypus for the purposes of such 
section 639. 

******* 

POLICY WITH RESPECT TO INDOCHINA 

Sec. 34."^ (a) The Congress finds that the cease-fire provided for in 
the Paris Agreement on Ending the War and Restoring Peace in 
Vietnam has not been observed by any of the Vietnamese parties to 
the conflict. Military operations of an offensive and defensive nature 
continue throughout South Vietnam. In Cambodia, the civil war 
between insurgent forces and the Lon Nol government has intensified, 
resultinc: in widespread human suffering and the virtual destruction 
of the Cambodian economy. 

(b) The Congress further finds that continuation of the military 
struggles in South Vietnam and Cambodia are not in the interest of 
the parties directly engaged in the conflicts, the people of Indochina 
or world peace. In order to lessen the human suffering in Indochina 
and to bring about a genuine peace there, the Congress urges and 
requests the President and the Secretary of State to undertake the 
following measures : 

(1) to initiate negotiations with representatives of the Soviet 
Union and the People's Republic of China to arrange a mutually 
agreed-upon and rapid de-escalation of military assistance on the 
part of the three principal suppliers of arms and material to all 
Vietnamese and Cambodian parties engaged in conflict ; 

(2) to urge by all available means that the Government of the 
Khmer Republic enter in negotiations with representatives of the 
Khmer Government of National Union for the purpose of arrang- 
ing an immediate cease-fire and political settlement of the con- 
flict: and to use all available means to establish contact with 
the Khmer Government of National Union, and to urge them to 
participate in such negotiations. The United States should urge 
all Cambodian particles to use the good offices of the United Na- 
tions or a respected third country for the purpose of bringing an 
end to hostilities and reaching a political settlement ; 

(3) to utilize any public or private forum to negotiate directly 
with representatives of the Democratic Republic of Vietnam, the 
Provisional Revolutionary Government, and the Republic of Viet- 
nam to seek a new cease-fire in Vietnam and full compliance with 
the provisions of the Paris Agreement on Ending the War and 
Restoring Peace in Vietnam, including a full accounting for Amer- 
icans missing in Indochina; 

(4) to reconvene the Paris Conference to seek full implementa- 
tion of the provisions of the Agreement of January 27, 1973, on 
the part of all Vietnamese parties to the conflict ; and 

(5) to maintain regular and full consultation with the appro- 
priate committees of the Congress and report to the Congress and 
the Nation at regular intervals on the progress toward obtaining 
a total cessation of hostilities in Indochina and a mutual reduc- 
tion of military assistance to that area. 



'22 use 2431 note. 



152 



, PRINCIPLES GO^\ERNIXG ECONOMIC AID TO INDOCHINA 

Sec. 35.^ (a) Congress calls upon the President and Secretary of 
State to take the following actions designed to maximize the benefit 
of United States economic assistance : 

(1) to organize a consortium to include multilateral financial 
institutions to help plan for Indochina reconstruction and devel- 
opment; to coordinate multilateral and bilateral contributions 
to the area's economic recovery ; and to provide continuing advice 
to the recipient nations on the use of their own and outside 
resources ; 

(2) to develop, in coordination with the recipient governments, 
other donors, and the multilateral financial institutions, a com- 
prehensive plan for Indochina reconstruction and economic 
development ; 

(3) to develop country-by-country reconstruction and develop- 
ment plans, including detailed plans for the development of 
individual economic sectors, that can be used to identify and 
coordinate specific economic development projects and programs 
and to direct United States resources into areas of maximum 
benefits ; 

(4) to shift the emphasis of United States aid programs from 
consumption-oriented expenditures to economic development; 

(5) to identify possible structural economic reforms in areas 
such as taxation, exchange rates, savings mechanisms, internal 
pricing, income distribution, land tenure, budgetary allocations 
and corruption, which should be undertaken if Indochinese eco- 
nomic development is to progress ; 

(6) to include in Indochina economic planning and pri!)graming 
specific performance criteria and standards which will enable the 
Congress and the executive branch to judge the adequacy of the 
recipient's efforts and to determine whether, and what amounts 
of, continued United States funding is justified; and 

(7) to provide humanitarian assistance to Indochina wherever 
practicable under the auspices of and by the United Nations and 
its specialized agencies, other international organizations or 
arrangements, multilateral institutions, and private voluntary 
agencies with a minimum presence and activity of United States 
Government personnel. 

(b) This section shall not be construed to imply continuation of 
a United States financial commitment beyond the authorization pro- 
vided for in this Act or amendments made by this Act. 

INDOCHINA POSTWAR RECONSTRUCTION 

Sec. 36.^ (a) There are authorized to be appropriated to the Presi- 
dent to furnish assistance for the relief and reconstruction of South 
Vietnam, Cambodia, and Laos, in addition to funds otherwise 



«22 use 2431 note. 

» 22 use 2432 note. FA Appropriation Act, 1975 : $440,000,000 "For necessary expenses 
to carry out the provisions of section 801 of the Foreign Assistance Act of 1961, as 
amended, and section 3G(a) of the Foreign Assistance Act of 1974." 



153 



available for such purposes, for the fiscal year 1975 not to exceed 
$617,000,000. Of the amount appropriated for fiscal year 1975 — 

(1) $449,900,000^ shall be available only for the relief and 
reconstruction of South Vietnam in accordance with section 38 of 
this Act ; 

(2) $100,000,000 shall be available only for the relief and 
reconstruction of Cambodia in accordance with section 39 of this 
Act; 

(3) $40,000,000 shall be available only for the relief and recon- 
struction of Laos in accordance with section 40 of this Act ; 

(4) $4,100,000 shall be available only for the regional develop- 
ment program ; 

(5) $16,000,000 shall be available only for support costs for 
the agency primarily responsible for carrying out this part; and 

(6) $7,000,000 shall be available only for humanitarian assist- 
ance through international organizations. 

Such amounts are authorized to remain available until expended. 

(b) The authority of section 610(a) of the Foreign Assistance Act 
of 1961 may not be used in fiscal year 1975 to transfer funds made 
available for any provision of such Act of 1961 into funds made avail- 
able for part V of siich Act for South Vietnam, Cambodia, or Laos 
under this section. 

(c) No assistance may be provided to South Vietnam, Cambodia, or 
Laos in fiscal year 1975 under part I (including chapter 4 of part II) 
of the Foreign Assistance Act of 1961. This prohibition may not be 
waived under section 614(a) of such Act of 1961 or any other pro- 
vision of law. 

(d) Notwithstanding subsection (b) of this section, funds made 
available under any provision of this or any other law for the purpose 
of providing military assistance for South Vietnam, Laos, or Cambo- 
dia during fiscal year 1975 may be transferred to, and consolidated 
with, any funds made available to that country for war relief, recon- 
struction, or general economic development, if such transfer does not 
result in a greater amount than is allocated for such country under 
paragraph ( 1) , (2) , or (3) of subsection (a) . 

(e) To the extent not inconsistent with the provisions of this Act, all 
prohibitions, restrictions, limitations, and authorities contained in the 
Foreign Assistance Act of 1961 which are applicable to part V of such 
Act of 1961 shall apply with respect to the assistance authorized by 
this section. 

ASSISTANCE TO SOUTH VIETNAMESE CHILDREN 

Sec. 37.^^ (a) It is the sense of the Congress that inadequate provi- 
sion has been made (1) for the establishment, expansion and improve- 
ment of day care centers, orphanages, hostels, school feeding programs, 
health and welfare programs, and training related to these programs 
which are designed for the benefit of South Vietnamese children, dis- 
advantaged by hostilities in Vietnam or conditions related to those 
hostilities, and (2) for the adoption by United States citizens of South 
Vietnamese children who are orphaned or abandoned, or whose parents 



22 use 2433 note. 



154 



or sole surviving parent, as the case may be, has irrevocably relin- 
quished all parental rights, particularly children fathered by United 
States citizens. 

(b) The President is, therefore, authorized to provide assistance, on 
terms and conditions he considers appropriate, for the purposes 
described in clauses (1) and (2) of subsection (a) of this section. Of 
the funds appropriated pursuant to section 36(a) of this Act, 
$10,000,000, or its equivalent in local currency, shall be available until 
expended solel}^ to carry out this section. Not more than 10 per centum 
of the funds made available to carry out this section may be expended 
for the purposes referred to in clause (2) of subsection (a). Assistance 
provided under this section shall be furnished, to the maximum extent 
practicable, under the auspices of and by international agencies or pri- 
vate voluntary agencies. 



LIMITATIONS WITH RESPECT TO SOUTH VIETNAM 



Sec. 38.^1 (a) The $449,900,000 made available in accordance with 
section 36(a) (1) of this Act shall be allocated as follows : 

(1) $90,000,000 for humanitarian assistance, of which there 
shall be available — 

(A) $70,000,000 for refugee relief; 

(B) $10,000,000 for child care; and 

(C) $10,000,000 for health care; 

(2) $154,500,000 for agricultural assistance, of which there shall 
be available— 

(A) $85,000,000 for fertilizer; 

(B) $12,000,000 for POL (for agriculture) ; 

(C) $6,000,000 for insecticides and pesticides ; 

(D) $10,000,000 for agricultural machinery and equipment 
(including spare parts) ; 

(E) $3,500,000 for agricultural advisory services; 

(F) $20,000,000 for rural credit; 

(G) $10,000,000 for canal dredging; 

(H) $4,000,000 for low-lift pumps ; and 

(I) $4,000,000 for fish farm development ; 

(3) $139,800,000 for industrial development assistance of which 
there shall be available — 

(A) $124,000,000 for commodities; 

(B) $10,000,000 for industrial credit ; and 

(C) $5,800,000 for industrial advisory services (including 
feasibility studies) ; 

(4) $65,600,000 for miscellaneous assistance, of which there 
shall be available — 

(A) $47,900,000 for the service sector (including POL, 
machinery equipm.ent, and spare parts) ; and 

(B) $17,700,000 for technical services and operating 
expenses. 

(b) (1) No funds made available in accordance with section 36(a) 
(1) may be transferred to, or consolidated with, the funds made avail- 

" 22 use 2431 note. FAA Appropriation Act, 1975 : $440,000,000 "For necessary 
expenses to carry out the provisions of section 803 of the Foreign Assistance Act of 1961 
as amended, and section 30 (a) of tlie Foreign Assistance Act of 1974 " 



loo 



able for military assistance, nor may more than 20 per centum of the 
funds made available under paragraph (1), (2), (3), or (4) of sub- 
section (a) of this section be transferred to, or consolidated with, the 
funds made available under any other such paragraph. 

(2) Whenever the President determines it to be necessary in carry- 
in o- out this section, any funds made available under any subparagraph 
of^'paragraph (1), (2), (3), or (4) of subsection (a) of this section 
may be transferred to. and consolidated with, the funds made available 
under any other subparasfraph of that same paragraph. 

(3) The President sliall fully inform the Speaker of the House of 
Representatives and the Committee on Foreign Relations of the Senate 
of each transfer he intends to make under paragraph (1) or (2) of this 
subsection prior to making such transfer. 

(c) No funds may be obligated for any of the purposes described 
in subsection (a) of this section in, to, for, or on behalf of South 
Vietnam in any fiscal year beginning after June 30, 1975, unless such 
funds have been specifically authorized by lavr enacted after the date 
of enactment of this section. In no case shall funds in any amount in 
excess of the amount specifically authorized by law for any fiscal year 
be obligated for any such purpose during such fiscal year. 

(d) After the date of enactment of this section, whenever any 
request is made to the Congress for the appropriation of funds for use 
in, to, for, or on behalf of South Vietnam for any fiscal year the Presi- 
dent shall furnish a written report to the Congress explaining the 
purpose for which such funds are to be used in such fiscal year. 

(e) The President shall submit to the Congress within thirty days 
after the end of each quarter of each fiscal year, beginning with the 
fiscal year which begins July 1, 1974, a written report showing the 
total amount of funds obligated in, to, for, or on behalf of South 
Vietnam during the preceding quarter by the United States Govern- 
ment, and shall include in such report "a general breakdown of the 
total amount obligated, describing the different purposes for which 
such funds were obligated and the total amount oblirrated for such 
purpose. 

(f) (1) Efi'ective six months after the date of enactment of this 
section the total number of civilian officers and employees, including 
contract employees, of executive agencies of the United States Govern- 
ment who are citizens of the United States and of members of the 
Armed Forces of the United States present in South Vietnam shall not 
at any one time exceed four thousand, not more than two thousand 
five hundred of whom shall be members of such arm.ed forces and 
direct hire and contract employees of the Department of Defense. 
iLliective one year after the date of enactment of this section, such total 
number shall not exceed at any one time three thousand, not more than 
one thousand five hundred of whom shall be members of such armed 
Defense^ '^^^ contract em.ployees of the Department of 

f^nlf li^^TT^^r^^i?. months after the date of enactment of this sec- 
tion, the United States shall not, at any one time, pay in whole or 
Ih^^ ' fY'^c^ly or indirectly, the compensation or allowances of more 
than eight hundred individuals in South Vietnam who are citizens 



156 



of countries other than South Vietnam or the United States. Effec- 
tive one year after the date of enactment of this section, the total 
number of individuals whose compensation or allowance is so paid 
shall not exceed at any one time five hundred. 

(3) For purposes of this subsection, "executive agency of the United 
States Government" means any agency, department, board, wholly 
or partly owned corporation, instrumentality, commission, or estab- 
lishment witliin the executive branch of the United States Govern- 
ment. 

(4) This subsection shall not be construed to apply with respect 
to any individual in South Vietnam vrho (A) is an employee or vol- 
unteer worker of a voluntary private, nonprofit relief organization 
or is an employee or volunteer worker of the International Commit- 
tee of the Red Cross, and (B) engages only in activities providing 
humanitarian assistance in South Vietnam. 

(g) Tliis section shall not be construed as a commitment by the 
United States to South Vietnam for its defense. 

LIMITATIONS WITH RESPECT TO CAMBODIA 

Sec. 39." (a) * * * 

(b) * * * 

(c) The $100,000,000 made available in accordance with section 
36 (a) (2) of this Act shall be allocated as follows : 

( 1 ) $20,000,000 for humanitarian assistance ; 

( 2 ) $63,000,000 for commodity import assistance ; 

(3) $15,000,000 for multilateral stabilization assistance; and 

(4) $2,000,000 for technical support and participant training. 

(d) No funds made available in accordance with section 36(a) (2) 
may be transferred to, or consolidated with, the funds allocated for 
military assistance to Cambodia under section 655(a) of the For- 
eign Assistance Act of 1961, nor may more than 20 per centum of the 
funds made available under any paragraph of subsection (c) of this 
section be transferred to, or consolidated with, the funds made avail- 
able under any other such paragraph. 

(e) No funds may be obligated for any of the purposes described 
in section 655(a) of the Foreign Assistance Act of 1961 in, to, for, or 
on behalf of Cambodia in any fiscal year beginning after June 30, 1975, 
unless such funds have been specifically authorized by law enacted 
after the date of enactment of this section. In no case shall funds in 
any amount in excess of the amount specifically authorized by law 
for any fiscal year be obligated for any such purpose during such 
fiscal year. 

(f ) This section shall not be construed as a commitment by the 
United States to Cambodia for its defense. 

LIMITATIONS WITH RESPECT TO LAOS 

Sec. 40.^^ (a) Notwithstanding any other provision of law, no 
funds authorized to be appropriated by this or any other law may be 
obligated in any amount in excess of $70,000,000 during the fiscal year 



"22 rSC 2415 note. 
"22 use 2431 note. 



-I - T 

±0/ 

ending June 30, 1975, for the purpose of carrying out directly or 
indirectly any economic or military assistance, or any operation, proj- 
ect, or program of any kind, or for providing any goods, supplies, 
materials, equipment, services, personnel, or advisers in, to, for, or 
on behalf of Laos. Of that amount, there shall be available — 

( 1 ) $30,000,000 for military assistance ; and 

(2) $40,000,000 only for economic assistance, of which there 
shall be available — 

(A) $11,000,000 for humanitarian assistance ; 

(B) $6,500,000 for reconstruction and development 
assistance ; 

( C ) $16,100,000 for stabilization assistance ; and 

( D ) $6,400,000 for technical support. 

(b) Xo funds made available under paragraph (2) of subsection 
(a) of this section may be transferred to. or consolidated with, the 
funds made available under paragraph (1) of such subsection, nor 
may more than 20 per centum of the funds made available under any 
subparagraph of paragraph (2) be transferred to, or consolidated 
with, the funds made available under any other such subparagraph. 

(c) In computing the limitations on obligation authority under 
subsection (a) of this section with respect to such fiscal year, there 
shall be included in the computation the value of any goods, supplies, 
materials, equipment, services, personnel, or advisers provided, to, 
for, or on behalf of Laos in such fiscal year by gift, donation, loan, 
lease or otherwise. For the purpose of this subsection, "value'' means 
the fair market value of any goods, supplies, materials, or equipment 
provided to, for, or on behalf of Laos but in no case less than 33^3 
per centum of the amount the United States paid at the time such 
iroods, supplies, materials, or equipment were acquired by the United 
States. 

(d) No funds may be obligated for any of the purposes described 
in subsection (a) of this section in, to, for. or on behalf of Laos in 
any fiscal year beginning after June 30, 1975, unless such funds have 
been specifically authorized by law enacted after the date of enact- 
ment of this section. In no case shall funds in any amount in excess of 
the amount specifically authorized by law for any fiscal year be obli- 
gated for any sucli purpose during such fiscal year/ 

(e) After the date of enactment of this section, whenever any request 
is made to the Congress for the appropriation of funds for use in, to, 
for, or on behalf of Laos, for any fiscal year, the President shall furnish 
a written report to the Congress explaining the purpose for which 
such funds nre to be used in such fiscal year. 

(f ) The President shall submit to the Congress within thirtj days 
after the end of each quarter of each fiscal year beginning with the 
fiscal year which begins July 1, 1974, a written report showing the 
total amount of funds obligated in, to , for, or on behalf of Laos during 
the preceding quarter by the United States Government and shall 
include in such report a general breakdown of the total amount obli- 
gated, described the different purposes for which such funds were 
obligated and the total amount obligated for such purpose. 

^ (g) This section shall not be construed as a commitment by the 
United States to Laos for its defense. 



158 



NUCLEAR POWERPLANTS 
4: ^ « * * 4: 

Sec. 43.^^ Xone of the funds authorized by this Act may be used to 
finance the construction of, the operation or maintenance of, or the 
supply of fuel for any nuclear powerplant in Israel or Egypt, which 
has been approved under an agreement for cooperation between the 
United States and either such country. 

* * ❖ ^ Jj: :j« H« 

GORGAS MEMORIAL INSTITUTE 

Sec. 47.^^ The first section of the Act entitled "An Act to authorize a 
permanent annual appropriation for the maintenance and operation 
of the Gorgas Memorial", approved May 7, 1928, is amended by strik- 
ing out "$500,000" and inserting "$2,000,000" in lieu thereof. 

INTERNATIONAL COMMISSION OF CONTROL AND SUPERVISION IN VIETNAM 

Sec. 48.^^ (a) There are authorized to be appropriated to the Depart- 
ment of State for fiscal year 1975 not to exceed $16,526,000 for pay- 
ments by the United States to help meet expenses of the International 
Commission of Control and Supervision in Vietnam. Funds appro- 
priated under this subsection are authorized to be made available for 
reimbursement to the Agency for Internationl Development of 
amounts expended by the Agency during fiscal year 1975 as interim 
United States payments to help meet expenses of the International 
Commission of Control and Supervision. 

(b) There are authorized to be appropriated to the Department of 
State not to exceed $11,200,000 for reimbursement to the Ag3ncy for 
International Development of amounts expended by the Agency for 
International Development to help meet expenses of the International 
Commission on Control and Supervision in fiscal year 1974. 

(c) Reimbursements received by the Agency for International 
Development under this section may be credited to applicable appro- 
priations of the Agency and shall be available for the purposes for 
which such appropriations are authorized to be used during fiscal year 
1975. 

POLICY ON ASSISTANCE TO AFRICA 

Sec. 49.^^ The President is requested to review the regional allocation 
of economic development assistance and to increase Africa's share of 
the Agency for International Development loans and grants. A special 
efi'ort should be made to provide more assistance to th e sixteen of the 
world's twenty-five least developed countries that are in Africa and 
to the fourteen African nations that are judged to be most seriously 
affected by rising costs of food and fuel. The President is requested to 
make a report to Congress on action taken to provide the developing 
countries of Africa with an equitable share of United States economic 
assistance at the time that the Agency for International Develop- 
ment's operational year budget for fiscal year 1975 is submitted to 
Congress and again with the submission to Congress of the proposed 
AjT^ency for International Development budget for fiscal year 1976, 

i*22 IJ.SC 2406 note. 
1=22 use 278. 
"22 TTSC 2431 note. 
" 22 use 2166 note. 



159 



POLICY OX THE INDEPENDENCE OF ANGOLA, MOZA:MBIQUEj AND 

GUINEA-BISSAU 

Sec. 50.^^ (a) (1) Congress fiiids that the Government of Portugal's 
recognition of the right to independence of the African territories of 
Angola, Mozambique, and Guinea-Bissau marks a significant advance 
toward the goal of self-determination for all the peoples of Africa, 
without which peace on the continent is not secure. 

(2) Congress finds that progress toward independence for the Por- 
tuguese African territories will have a significant im.pact on the inter- 
national organizations and the community of nations. 

(3) Congress commends the Portuguese Government's initiatives on 
these fronts as evidence of a reaffirmation of that Government's sup- 
port for her obligations under both the United Nations Charter and 
the North Altantic Treaty Organization. 

(b) Therefore, Congi^ess calls upon the President and the Secretary 
of State to take the following actions designed to make clear United 
States support for a peaceful and orderly transition to independence 
in the Portuguese African territories : 

(1) An official statement should be issued of United States sup- 
port for the independence of Angola, Mozambique, and Guinea- 
Bissa, and bof our desire to have good relations with the future 
governments of the countries. 

(2) It should be made clear to the Government of Portugal that 
we view the efforts toward a peaceful and just settlement of the 
conflict in the African territories as consistent Avith Portugal's 
obligations under the North Atlantic Treaty Organization 
partnership. 

(3) The United States should encourage United Nations sup- 
port for a peaceful transition to independence, negotiated settle- 
ment of all differences, and the protection of human rights of all 
citizens of the three territories. 

(4) The United States should open a dialog with potential lead- 
ers of Angola, Mozambique, and Guinea-Bissau and assure them 
of our commitment to their genuine political and economic 
independence. 

(5) The economic development needs of the three territories 
will be immense when independence is acliieved. Therefore, it is 
urged that the United States Agency for International Develop- 
ment devote attention to assessing the economic situation in 
Angola, jMozambique, and Guinea-Bissau and be ready to co- 
operate with the future governments in providing the kind of 
assistance that will help make their independence viable. In addi- 
tion, the United States Government should take the initiative 
among other donors, both bilateral and multilateral, in seeking 
significant contribution of development assistance for the three 
territories. 

(6) In light of the need of Angola, Mozambique, and Guinea- 
Bissau for skilled and educated manpower, a priority consid- 
eration should be given to expanding current United States 
programs of educational assistance to the territories as a timely and 
substantive contribution to their independence. 

" 22 use 2166 note. 

G5-00S— 70 12 



160 



(c) Eeports should be submitted to the Congress on the implemen- 
tation of the proposals set forth in subsection (b) and Congress should 
be kept fully informed on developments in United States policy to- 
ward the independence of the Portuguese African terrorities. 

CONVENTIONAL ARMS TRADE 

Sec. 51.^^ (a) It is the sense of the Congress that the recent growth 
in international transfers of conventional arms to developing nations — 

(1) is a cause for grave concern for the United States and 
other nations in that in particular areas of the world it increases 
the danger of potential violence among nations, and diverts scarce 
world resources from more peaceful uses ; and 

(2) could be controlled progressively through negotiations and 
agreements among supplier and recipient nations. 

(b) Therefore, the President is urged to propose to the Geneva 
Conference of the Committee on Disarmament that it consider as a 
high priority agenda item discussions among participating nations 
of that Conference for the purposes of — 

(1) agreeing to workable limitations on conventional arms 
transfers ; and 

(2) establishing a mechanism through which such limitations 
could be elfectively monitored. 

(c) The President shall transmit to the Congress not later than six 
months after the enactment of this Act a report setting forth the steps 
he has taken to carry out this section. 

INVOL^HEMENT OF PUERTO RICO IN THE CARIBBEAN DEVELOPMENT BANK 

Sec. 52. (a) The President may transmit to the Caribbean Develop- 
ment Bank an instrument stating that the Commonwealth of Puerto 
Hico has the authority to conclude an agreement of accession with such 
Bank and to assume rights and obligations pursuant to such agree- 
ment. However, such agreement may only be concluded after it has 
been approved by the United States Secretary of State. 

(b) The instrument transmitted by the President to the Caribbean 
Development Bank under subsection (a) shall state that the United 
States shall not assume any financial or other responsibility for the 
performance of any obligation incurred by the Commonwealth of 
Puerto Rico pursuant to such agreement of accession or pursuant to 
any other aspect of its membership or participation in such Bank. 

(c) Such agreement of accession shall provide that the Common- 
wealtlT of Puerto Kico may not receive from the Caribbean Develop- 
ment Bank any funds provided to the Bank by the United States. 

« * * iC * « i|e 

POLICY WITII RESPECT TO COUNTRIES MOST SERIOUSLY AFFECTED BY 
FOOD SHORTAGES 

Sec. 55.2^ (a) The United [N'ations has designated thirty-two coun- 
tries as '^Most Seriously Affected" by the current economics ci-isis. 
These are countries without the internal food production capability or 
the foreign exchange availability to secure food to meet their imme- 



" 22 TJSC 2551 note. 
"22 use 2175 note. 



161 



diate food requirements. The Congress calls upon the President and 
Secretar}^ of State to take the following actions designed to mobilize 
appropriate resources to meet the food emergency : 

(1) Review and make appropriate adjustments in the level of 
programming of our food and fertilizer assistance programs with 
the aim of increasing to the maximum extent feasible the volume 
of food and fei-tilizer available to those countries most seriously 
affected by curi-ent food shortages. 

(2) Call upon all traditional and potential new donors of food, 
fertilizer, or the means of financing these commodities to immedi- 
ately increase their participation in efforts to address the 
emergency food needs of the developing world. 

(3) Make available to these most seriously affected countries 
the maximum feasible volume of food commodities, with appro- 
priate regard to the current domestic price and supply situations. 

(4) Maintain regular and full consultation with the appro- 
priate committees of the Congress and report to the Congress and 
the Nation on steps which are being taken to help meet this food 
emergency. In accordance with this provision, the President shall 
report to the Congress on a global assessment of food needs for 
fiscal year 1975, specifying expected food grain deficits and cur- 
rently planned programming of food assistance, and steps which 
are being taken to encourage other countries to increase their par- 
ticipation in food assistance or the financing of food assistance. 
Such report should reach the Congress promptly and should be 
supplemented quarterly for the remainder of fiscal year 1975. 

(5) The Congress directs that during the fiscal year ending 
June 30, 1975, not more than 30 percent of concessional food 
aid should be allocated to countries other than those which are 
most seriously affected by current food shortages, unless the Presi- 
dent dem.onstrates to the appropriate Committees of the Congress 
that the use of such food assistance is solely for humanitarian 
food purposes. 

(6) The Congress calls upon the President to proceed with 
the implementation of resolutions and recommendations adopted 
by the World Food Conference. The Congress believes that it is 
incumbent upon the United States to take a leading role in 
assisting in the development of a viable and coherent world food 
policy which would begin the task of alleviating widespread 
hunger and suffering prevalent in famine-stricken nations. The 
President shall report to the Congress within 120 days of enact- 
ment of this Act on the implementation of the resolutions and 
the extent to which the United States is participating in the 
implementation of resolutions adopted at the World Food 
Conference. 

REPAYMENT OP LOANS IN DEFAULT 

Sec. 58.2^ It is the sense of the Congress that any countrv receiving 
assistance under the Foreign Assistance Act of 1961 which is" in default, 
at least 90 days prior to the date of enactment of this Act, of any pav- 



" 22 use 2370 note. 



162 



ment of principal or interest due on any loan or credit received from 
the United States shall promptly pay all such principal and interest. 
It is further the sense of the Congress that the President shall promptly 
enter into negotiations with each such country to help effectuate the 
payment of such principal and interest, or to effectuate the transfer 
by*^such country to the United States of goods, services, concessions, 
or actions beneficial to the United States, in lieu of the payment of 
such principal and interest. 



d. Foreign Assistance Act of 1973 

Partial text of Public Law 93-189 [S. 1443], 87 Stat. 714, approved 
December 17, 1973 

Be it enacted by the Senate and House of Rejyresentatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Foreign Assistance Act of 1973". 

******* 



Note. — Except for the provisions noted below, the FAAct of 
1973 consists of amendments to the FAAct of 1961, the Foreign 
Military Sales Act, the 1971 Act to amend the FMS Act, and 
Sec. 414 of the Mutual Security Act of 1954. For text of section 
12(c) of the FA^Vct of 1973, see footnote 636 on page 138 of text. 



******* 

ASIAN DEVELOPMENT BANK ^ 

Sec. 28.2 Section 17 of the Asian Development Bank Act is amended 
by striking out "$60,000,000 for fiscal year 1972 and $40,000,000 for 
fiscal year 1973" and inserting in lieu thereof "100,000,000". 

Sec. 29.3 * * * [Repealed— 1974] 

TERMINATION OF INDOCHINA WAR 

Sec. 30.* No funds authorized or appropriated under this or any 
other law may be expended to finance military or paramilitary opera- 
tions by the United States in or over Vietnam, Laos, or Cambodia. 

lalMITATION ON USE OF FUNDS 

Sec. 31.^ No funds authorized or appropriated under any provision 
of law shall be made available for the purpose of financing directly or 
indirectly any military or paramilitary combat operations by foreign 
forces in Laos, Cambodia, North Vietnam, South Vietnam, or Thai- 
land unless (1) such operations are conducted by the forces of that 
government receiving such funds within the borders of that country, 
or (2) specifically authorized by law^ enacted after the date of enact- 
ment of this Act. 



1 For text of Act, see page 1041. 
»22 use 251 note. 

' Former section 29 regarding access to certain military bases abroad was repealed by 
section 29(b) of the FAAct of 1974. 
*22 use 2151 note. 
^22 use 2151 note. 

(163) 



164 



POLITICAL PRISONERS 

Sec. 32.^ It is the sense of Congress that the President should deny 
any economic or military assistance to the government of any foreign 
country which practices the internment or imprisonment of that coun- 
try's citizens for political purposes. 

ALBERT SCHWEITZER HOSPITAL 

Sec. 33.^ There is authorized to be appropriated to the President for 
fiscal year 1974 $1,000,000 ^ to make grants, on such terms and condi- 
tions as he m£Lj specify, to the Albert Schweitzer Hospital in Gabon. 

prisoners of war and INDR'IDUALS MISSING IN ACTION 

Sec. 34.^ (a) The Congress declares that — 

(1) the families of those one thousand three hundred individ- 
uals missing in action during the Indochina conflict have suffered 
extraordinary torment in ascertaining the full and complete infor- 
mation about their loved ones who are formally classified as 
missing in action ; 

(2) United States involvement in the Indochina conflict has 
come to a negotiated end with the signing of the Vietnam Agree- 
ment in Paris on January 27, 1973, and section 307 of the Second 
Supplemental Appropriations Act, 1973, requires that "None of 
the funds herein appropriated under this Act may be expended to 
support directly or indirectly combat activities in or over Cam- 
bodia, Laos, North Vietnam and South Vietnam or off the shores 
of Cambodia, Laos, North Vietnam and South Vietnam by L^nited 
States forces, and after August 15, 1973, no other funds hereto- 
fore appropriated under any other Act may be expended for such 
purpose."; 

(3) the question of the return cf prisoners of war and account- 
ing for individuals missing in action and dead in Laos is covered 
by article 18 of the Protocol signed by representatives of the Lao 
Patriotic Front (Pathet Lao) and the Koyal Laotian Government 
in Vientiane on September 14, 1973 (which implements article 5 
of the Agreement signed by the Pathet Lao and that government 
in Vientiane on February 21, 1973, requiring the release of all 
prisoners "regardless of nationality" captured and held in Laos), 
and paragraph C of such article iS provides that, within "15 to 
30 days" from the date of the singing of the Protocol, each side is 
to report the number of those prisoners and individuals still held, 
with an indication of their nationality and status, together with a 
list of names and any who died in captivity ; and 

(4) few of the United States men lost in Laos during the mili- 
tary engagements in Indochina have been return<^d, and with 
knowledfife about many of these men not yet being fully disclosed, 
and the North Vietnam cease-fire provisions calling for inspection 
of crash and grave sites and for other forms of cooperation have 
not been fully complied with. 

•22 FSC 2iril note. 
'22 rSC 2151 note. 

8 FA Annropriation Act, 1974: $1,000,000. 
•22 use 2151 note. 



165 



(b) It is, therefore, the sense of the Congress that — 

(1) the provisions for the release of prisoners and an account- 
ing of individuals missing and dead, as provided for in article 18 
of the Protocol signed on September 14, 1973, by the Pathet Lao 
and the Eoyal Laotian Government, be adhered to in spirit and 
in deed ; and 

(2) the faithful compliance with the spirit of the Laotian 
Agreement and Protocol on the question of individuals missing 
in action will encourage all parties in Indochina to cooperate in 
providing complete information on all nationals of any nation 
who may be captured or missing at any place in Indochina. 

RIGHTS IN CHII^ 

Sec. 35.^° It is tlie sense of the Congress that (1) the President 
should request the Government of Chile to protect the human rights 
of all individuals, Chilean and foreign, as provided in the Univei*sal 
Declaration of Pluman Eights, the Convention and Protocol Relating 
the Status of Refugees, and other relevant international legal instru- 
ments guaranteeing the granting of asylum, safe conduct, and the hu- 
mane treatment or release of prisoners; (2) the President should sup- 
port international humanitarian initiatives by the United Nations 
High Commissioner for Refugees and the International Committee of 
the Red Cross to insure the protection and safe conduct and resettle- 
ment of political refugees, the humane treatment of political prisoners, 
and the full inspection of detention facilities under international aus- 
pices; (3) the President should support and facilitate efforts by 
voluntary agencies to meet emergency relief needs; and (4) the 
President should request of the Inter-American Commission on Hu- 
man Rights to undertake an immediate inquiry into recent events 
occurring in Chile. 

REVISION OF SOCIAL PROGRESS TRUST FUND AGREEMENT 

Sec. 36." (a) The President or his delegate shall seek, as soon as 
possible, a revision of the Social Progress Trust Fund Agi'ecment 
(dated June 19, 1961) between the United States and the Inter- Amer- 
ican Development Bank. Such revision should provide for the — 

( 1 ) periodic transfer of unencumbered capital resources of such 
trust fund, and of any future repayments or other accruals other- 
wise payable to such trust fund, to the Inter-American Founda- 
tion, to be administered by the Foundation for purposes of part 
IV of the Foreign Assistance Act of 1969 (22 U.S.C. 290f and 
following) ; 

(2) utilization of such unencumbered capital resources, future 
repayments, and other accruals by the Inter- American Develop- 
ment Bank for purposes of sections 1 and 2 of the Latin American 
Development Act (22 U.S.C. 1942 and 1943) in such a way that 

10 22 use 2151 note. 
1122 use 2151 note. 

12 For text, see pafre 1 72. 

13 For text, see page 206. 



166 



the resources received in the currencies of the more developed 
member countries are utilized to the extent possible for the benefit 
of the lesser developed member countries ; or 

(3) both the transfer described in paragraph (1) and the uti- 
lization described in paragraph (2) . 

(b) Any transfer or utilization under this section shall be in such 
proportions as may be agreed to between the United States and the 
Inter- American Development Bank. 

(c) Any transfer under subsection (a) (1) shall be in the amounts, 
and in available currencies, determined in consultation with the Inter- 
American Foundation, to be required for its program purposes. 

(d) The revision of the Social Progress Trust Fund Agreement pur- 
suant to this section shall provide that the President or his delegate 
shall specify, from time to time, after consultation with the Inter- 
American Development Bank, the particular currencies to be used in 
making the transfer or utilization described in the section. 

(e) Not later than January 1, 1974, the President shall report to 
Congress on his action taken pursuant to this section. 

PR0HIBITI0:N" ox assistance to north VIETNAM 

Sec. ST.^"* Notwithstanding any other provision of law, no funds 
authorized by this Act shall be expended to aid or assist in the recon- 
struction of the Democratic Kepublic of Vietnam (North Vietnam), 
unless by an Act of Congress assistance to North Vietnam is specifically 
authorized. 

report concerning certain use of military assistance in AFRICA 

Sec. 38." The President of the United States shall, as soon as prac- 
ticable following the date of the enactment of this Act, make a deter- 
mination and report to Congress with respect to the use, if any, by any 
non-African country in support of its military activities in its African 
territories of — 

(1) assistance furnished under the Foreign Assistance Act of 
1961 after the date of the enactment of this Act ; 

(2) defense articles or services furnished after such date under 
the Foreign Military Sales Act; or 

(3) agricultural commodities furnished after such date under 
the Agricultural Trade Development and Assistance Act of 1954. 

WORLD FOOD SHORTAGES 

Sec. 39.^'^ (a) It is the sense of the Congress that the United States 
should participate fully in efforts to alleviate current and future food 
shortages which threaten tlie world. To this end, the President shall — 
(1) encourage, support, and expedite studies relating to the 
long-range implications of the world food situation (including 
studies of national and world production, distribution, and utili- 



"22 use 2151 nnte. 
« 22 use 2151 note. 
'•22 use 2220 cote. 



167 



zation of agricultural commodities and other foodstuffs) and sup- 
port the organizing of a Avorld food conference under United 
Nations auspices in 197-i; 

(2) request the member nations of the General Agreement on 
Tariffs and Trade to explore the means for assuring equitable 
access by all nations to national markets and mineral and agri- 
cultural resources; 

(3) consult and cooperate with appropriate international 
agencies, such as the Food and Agriculture Organization of the 
United IS^ations, in determining the need for, the feasibility of, 
and cost on an equitably-shared basis of, establishing an inter- 
national system of strategic food reserves; and 

(4) report his findings and recommendations to the Congress 
on the implementation of this section no later than December 31, 
1974. 

(b) It is further the sense of the Congress that — 

(1) in making assessments which would affect or relate to the 
level of domestic production, the Executive Branch should include 
in the estimates of overall utilization the expected demands for 
humanitarian food assistance through such programs as are 
carried out \mder the Agricultural Trade Development and As- 
sistance Act of 1954 (Public Law 480) ; and 

(2) legislation providing increased flexibility for responding 
to emergency and humanitarian requirements for food assistance 
should be considered as promptly as possible to the end that the 
last sentence of section 401 of tlie Agricultural Trade Develop- 
ment and Assistance Act of 1954 (Public Law 480), may be 
amended by striking the period and inserting in lieu thereof a 
comma and the following : ''unless the Secretary determines that 
some part of the exportable supply should be used to carry out 
the national interest and humanitarian objectives of this Act." 

USE OF LOCAL CURRENCIES 

Sec. 40." Effective July 1, 1974, no amount of any foreign currency 
(including principal and interest from loan repayments) which ac- 
crues in connection with any sale for foreign currency under any pro- 
vision of law may be used under any agreement entered into after the 
date of the enactment of this Act, or any revision or extension entered 
into after such date of any prior or subsequent agreement, to provide 
any assistance to any foreign country to procure equipment, ma- 
terials, facilities, or services for the common defense, including inter- 
nal security unless such agreement is specifically authorized by legisla- 
tion enacted after such date. 



1" See Use of Foreign Currencies section on page 219 for additional information. 
"22 use 2151 note. 



e. Foreign Assistance Act of 1971 
Partial text of Public Law 92-226 [S. 2819], 86 Stat. 20, approved February 7, 1972 

AN ACT To amend the Foreign Assistance Act of 1961, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled. That this Act may 
be cited as the "Foreign Assistance Act of 1971". 

FOOD -FOR-PE ACE PROGRAM 

Sec. 2.^ It is the sense of the Congress that funds to administer the 
food-for-peace program should not be reduced as the result of any 
reduction in the authorizations provided to carry out the Foreign 
Assistance Act of 1961. 



XoTE. — Except for the provisions quoted here, the FAiVct of 
1971 consists of amendments to the FAAct of 1961, the Foreign 
Military Sales Act, the 1971 Act to amend the FMS Act, the Act 
to authorize participation by the United States in the Interpar- 
liamentary Union, the Joint Resolution to authorize participa- 
tion by the United States in parliamentary conferences of the 
North Atlantic Treaty Organization, Part lY of the FAAct of 
1969, the Act to provide certain basic authority for the Depart- 
mentment of State, the United States Infonnation and Educa- 
tional Exchange Act of 1948, the Special FAAct of 1971, and 
P.L. 89-367 (Armed Forces Application Authorization, 1966). 



4( ♦ * * * * 

Sec. 304. * * * 
(c) * * * 

(3) The provisions of this subsection ^ and section 657 of such Act, 
as added by subsection (b) of this Act, shall apply with respect to each 
fiscal year commencing on or after July 1, 1971. 

PART lY— MISCELLANEOUS PROYISIONS 

Sec. 403. Paragraph (9) of section 5314 of title 5, United States 
Code, relating to level III of the Executive Schedule, is amended by 

^22 U.S.C. § 2151 note. For text of Food for Peace Act of 196G. see page 320. 
"This subsection provider! that the definition of "Value" appearing in Sec. 644(m) is 
not applicable when the word '"Value" is used in Sec. 657. 

(168) 



169 



inserting before the period at the end thereof the following : "and an 
Under Secretary of State for Coordinating Security Assistance 
Programs". 

* * * m * * * 

Sec. 407.^ (a) It is purpose of this section to enable the Congress 
generally, and the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of Representatives in 
particular, to carry out the purposes and intent of the Legislative 
Reorganization Acts of 1946 and 1970, with respect to — 

(1) the analysis, appraisal, and evaluation of the application, 
administration, and execution of the laws relating to the Depart- 
ment of State and the United States Information Agency and of 
matters relating to the foreign relations of the United States; 
and 

(2) providing periodic authorizations of appropriations for 
that Department and Agency. 

Sec. 410.* The Congress strongly urges the President to undertake 
such negotiations as may be necessary to implement that portion of 
the recommendations of the Report of the President's Commission for 
the Observance of the Twenty-fifth Anniversary of the United 
Nations (known as the "Lodge Commission") which proposes that the 
portion of the regular assessed costs to be paid by the United States 
to the United Nations be reduced so that the United States is assessed 
in each year not more than 25 per centum of such costs assessed all 
members of the United Nations for that year. 



'See Section 15 of the Act to provide certain basic authority for the Department of 
State and Section 701 of the United States Information and Educational Exchange Act of 
194S (pages 387 and 018). 

« See prtfre 782 of text for appropriations limitation on contributions to international 
organizations. 



f. Special Foreign Assistance Act of 1971, as amended 

Partial text of Public Law 91-^52 [H.R. 19911], 84 Stat. 1942, approved January 5, 
1971, as amended by Public Law 92-226 [Foreign Assistance Act of 1971; 
S. 2819], 86 Stat. 27, 35, approved February 7, 1972 

AN ACT To provide additional foreign assistance authorizations, and for 

other purposes 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Special Foreign Assistance Act of 1971". 

Sec. 2. There are authorized to be appropriated to the President 
for the fiscal year 1971 not to exceed — 

(1) $85,000,000 for additional military assistance and $70,000,- 
000 for special economic assistance for Cambodia ; 

(2) $100,000,000 for economic and military assistance programs 
to replace funds which were transferred by the President for use 
in Cambodia ; 

(3) $150,000,000 for additional military assistance for the Re- 
public of Korea ; 

(4) $30,000,000 for additional military assistance for Jordan ; 

(5) $3,000,000 for additional military 'assistance for Indonesia 
and $10,000,000 to replace funds transferred from other programs 
for use in Indonesia ; 

(6) $5,000,000 for additional military assistance for Lebanon; 

(7) $65,000,000 for additional supporting assistance for Viet- 
nam; and 

(8) $17,000,000 for additional general military assistance to 
compensate for a shortage in anticipated recovery of funds from 
past years' programs. 

Sec. 3.^ The President is authorized, until June 30, 1972, to trans- 
fer to the Republic of Korea such defense articles located in Korea 
and belonging to the Armed Forces of the United States on July 1, 
1970, as he may determine, except that no funds heretofore or here- 
after appropriated under this Act or the Foreign Assistance Act of 
1961 shall be available for reimbursem^ent to any agency of the United 
States Government for any ti-ansfer made pursuant to this section. 

Sec. 4. Except as otherwise provided in this Act, any assistance fur- 
nished out of funds appropriated under section 2 of this Act and any 
transfer made under section 3 of this Act shall be furnished or trans- 
ferred, as the case may be, in accordance with all of the purposes and 
limitations applicable by statute to that type of assistance or transfer 
under the Foreign Assistance Act of 1961 (including the provisions of 
section 652 ^ of such Act, as added by section 8 of this Act) . 

122 use 2302 note. 

2 For text of Sec. 652 as added to the FAAct of 3 9G1 by See. 8 of this Act, see pace 130. 

(170) 



171 



Sec. 5.3 [Amended Sec. 402 of the FAAct]. 

Sec. G. (a)* [Amended Sec. 451(a) of the FAAct]. 

(b)^ Excess foreign currencies held in Pakistan not allocated on the 
date of enactment of this section are authorized to be appropriated 
for a period of one year from such date of enactment to help Pakistan 
withstand the disaster which has occurred. 

Sec. 7.^ (a) In line with the expressed intention of the President 
of the United States, none of the funds authorized or appropriated 
pursuant to this or any other Act may be used to finance the introduc- 
tion of United States ground combat troops into Cambodia, or to 
provide United States advisers to or for military, paramilitary, po- 
lice, or other security or intelligence forces ^ in Cambodia. 

(b) Military and economic assistance provided by the United States 
to Cambodia and authorized or appropriated pursuant to this or any 
other Act shall not be construed as a commitment by the United States 
to Cambodia for its defense. 

Sec. 8.^ [Added Sec. 652. Limitation Upon Additional Assistance 
to Cambodia, to the FAAct]. 



3 Sec. 202(b) of the FAAct of 1971 repealed chapter 4 of part I of FAAct of 1961. as 

amended. 

*22 use §22Gl(a). See page 66 of text of Sec. 4ol(a) of the FAAct of 1961, as 
amended. 

6 22 use S 2261 note. 
« 22 use § 2411 note. 

■^The words "military, paramilitary, police, or other security or intelligence forces" 
were substituted in lieu of "Cajnbodian military forces" by Sec. 408 of the Foreign Assist- 
ance Act of J971. 

8 Sec page 136 for text of Sec. 652 of the FAAct of 1961, as amended. 

Note. — Sections 5, 6(a) and 8 of the Special Foreign Assistance Act of 1971 are amend- 
ments to the Foreign Assistance Act of 1961, as amended. 



g. Foreign Assistance Act of 1969, as amended 



Partial text of Public Law 91-175 [H.R. 14580], S3 Stat. 805, approved Decem- 
ber 30, 19G9, as amended by Public Law 92-226 [Foreign Assistance Act of 1971 ; 
S. 2819], 86 Stat. 20, 34, approved February 7, 1972 

♦ ♦****♦ 

Part IV — The Inter- American Foundation Act^ 

Sec. 401.2 Inter- American Foundation. — (a) There is created as 
an agency of the United States of America a body corporate to be 
Imown as the Inter- American Foundation (hereinafter in this section 
referred to as the "Foundation"') 

(b) The future of freedom, security, and economic development in 
the Western Hemisphere rests on the realization that man is the foun- 
dation of all human progress. It is the purpose of this section to pro- 
vide support for developmental activities designed to achieve condi- 
tions in the Western Hemisphere under whicli the digTiity and the 
worth of each human person will be respected and under which all 
men will be afforded the opportunity to develop their potential, to 
seek through gainful and productive work the fulfillment of their 
aspirations for a better life, and to live in justice and peace. To this 
end, it shall be the purpose of the Foundation,* primarily in coopera- 
tion with private, regional, and international organizations, to — 

(1) strengthen the bonds of friendship and understanding 
among the peoples of this hemisphere ; 

(2) support self-help efforts designed to enlarge the oppor- 
tunities for individual development ; 

(3) stimulate and assist effective and ever wider participation 
of the people in the development process ; 

(4) encourage the establishment and growth of democratic 
institutions, private and governmental, appropriate to the require- 
ments of the individual sovereign nations of this hemisphere. 

In pursuing these purposes, the Foundation shall place primary 
emphasis on the enlargement of educational opportunities at all levels, 

1 Section 406(1) of the Foreign Assistance Act of 1971 substituted the title "Part IV — 
The Inter-American Foundation Act" in lieu of "Part IV — Inter-American Social Develop- 
ment Institute". 

2 22 U.S.C. § 290f. 

3 The caption of section 401 and subsection (a) thereof, which were amended bv sec. 
406(2) of the Foreign Assistance Act of 1971, formerlj' read as follows: "Inteu-American 
Social Development Institute. — (a) There is created as an agency of the United States 
of America a body corporate to be known as the 'Inter-American Social Development 
Institute' (hereafter in this section referred to as the 'Institute')." 

* Section 400(3) of the Foreign Assistance Act of 1971 amended section 401 by substi- 
tuting "Foundation" In lieu of "Institute" wherever it appears. 

Note. — Except for Part IV, which relates to the Inter-American Social Development 
Tn.'-titute (title changed to The Inter-American Foundation Act by Sec. 406(1) of the 
P^'AAct of 1971) and Part V, which relates to amendments to other acts, the Foreign 
Assistance Act of 19G9 con.sists of amendments to the Foreign Assistance Act of 1961, 
as amended. 



(172) 



173 



the production of food and tlie development of agriculture, and the 
improvement of environmental conditions relating to health, maternal 
and child care, family planning, housing, free trade union develop- 
ment, and other social and economic needs of the people. 

(c) Hie Foundation shall carry out the purposes set forth in subsec- 
tion (b) of tliis section primarily through and with private organiza- 
tions, individuals, and international organizations by undertaking or 
sponsoring appropriate research and by planning, initiating, assist- 
ing, financing, administering, and executing programs and projects 
designed to promote the achievement of such purposes. 

(d) In carrying out its functions under this section, the Foundation 
shall, to the maximum extent possible, coordinate its undertakings 
with the developmental activities in the Western Hemisphere of the 
vni'ious organs of the Organization of American States, the United 
States Government, international organizations, and other entities 
engaged in promoting social and economic development of Latin 
America. 

(e) The Foundation, as a corporation — 

(1) shall have perpetual succession unless sooner dissolved by 
an Act of Congress; 

(2) may adopt, alter, and use a corporate seal, which shall be 
judicially noticed; 

(3) may make and perform contracts and other agreements 
with any individual, corporation, or other body of persons how- 
ever designated whether within or without the United States of 
America, and with any gov^ernment or governmental agency, 
domestic or foreign; 

(4) ^ shall determine and prescribe the manner in which its 
obligations shall be incurred and its expenses, including expenses 
for representation (not to exceed $10,000 in any fiscal year), 
alloAved and paid; 

(5) may, as necessary for the transaction of tlie business of the 
Fouiidation, employ, and fix the compensation of not to exceed 
one hundred persons at any one time ; 

(6) may acquire by purchase, devise, bequest, or gift, or other- 
wise lease, hold, and improve, such real and personal property as 
it finds to be necessary to its purposes, whether within or without 
the United States, and in any manner dispose of all such real and 
pei^onal property held by it and use as general funds all receipts 
arising from the disposition of such property; 

(7) shall be entitled to the use of the United States mails in the 
same manner and on the same conditions as the executive depart- 
ments of the Government ; 

(8) may, with tlie consent of any board, corporation, commis- 
sion, independent establishment, or executive department of the 
Government, including any field service thereof, avail itself of the 
use of information, services, facilities, officers, and employees 
thereof in carrying out the provisions of this section ; 



5 Section 401(e)(4) was amended by section 406(4) of the Foreign Assistance Act 

formerly read as follows : "(4) shall determine and prescribe the manner in which 
s obligations shall be incurred and its expenses allowed and paid ;". 



174 



(9) may accept money, funds, property, and services of every 
kind by gift, devise, bequest, grant, or otherwise, and make ad- 
vances, grants, and loans to any individual, corporation, or other 
body of persons, whether within or witliout the United States of 
America, or to any government or governmental agency, domestic 
or foreign, when deemed advisable by the Foundation in further- 
ance of its purposes ; 

(10) may sue and be sued, complain, and defend, in its corpo- 
rate name in any court of competent jurisdiction; and 

(11) shall have such other powers as may be necessary and in- 
cident to carrying out its powers and duties under this section. 

(f ) Upon termination of the corporate life of the Foundation all of 
its assets shall be liquidated and, unless otherwise provided by Con- 
gress, shall be transferred to the United States Treasury as the prop- 
erty of the United States. 

(g) The management of the Foundation shall be vested in a board of 
directors (hereafter in this section referred to as the "Board") com- 
posed of seven members appointed by the President, by and with the 
advice and consent of the Senate, one of whom he shall designate to 
serve as Chairman of the Board and one of whom he shall designate 
to serve as Vice Chairman of the Board. Four members of the Board 
shall be appointed from private life. Three members of the Board 
shall be appointed from among officers or employees of agencies of 
the United States concerned with inter-American affairs. Members of 
the Board shall be appointed for terms of six years, except that of the 
members first appointed two shall be appointed for term.s of two years 
and two shall be appointed for terms of four years, as designated by 
the President at the time of their appointment. A mem-ber of the Board 
appointed to fill a vacancy occurring prior to the expiration of the 
term for which his predecessor was appointed shall be appointed only 
for the remainder of such term ; but upon the expiration of his term of 
office a member shall continue to serve until his successor is appointed 
and shall have qualified. Members of the Board shall be eligible for 
reappointment. 

(h) Members of the Board shall serve without additional compen- 
sation, but shall be reimbursed for actual and necessary expenses not 
in excess of $50 per day, and for transportation expenses, while 
engaged in their duties on behalf of the corporation. 

(i) The Board shall direct the exercise of all the powers of the 
Foundation. 

(j) The Board may prescribe, amend, and repeal bylaws, rules, and 
regulations governing the manner in which the business of the Founda- 
tion may be conducted and in which the powers granted to- it by law 
may be exercised and enjoyed. A majority of the Board shall be 
required as a quorum. 

(k) In furtherance and not in limitation of the powers conferred 
upon it, the Board may appoint such committees for the carrying out 
of the work of the Foundation as the Board finds to be for the best in- 
terests of the Foundation, each committee to consist of two or more 
members of the Board, which committees, together with officers and 
agents duly authorized by the Board and to the extent provided 



175 



by the Board, shall have and may exercise the powers of the Board 

in the management of the business and affairs of tlie Fomidation. 

( 1 ) * ( 1 ) The chief executive officer of the Foundation shall be a Pres- 
ident who shall be appointed by the Board of Directors on such terms 
as the Board may determine. The President shall receive compensa- 
tion at the rate provided for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code. 

(2) Experts and consultants, or organizations thereof, may be em- 
ployed as authorized by section 3109 of title 5, United States Code. 

(m) In order to further the purposes of the Foundation there shall 
be established a Council to be composed of such number of individuals 
as may be selected by the Board from among individuals laiowledge- 
able concerning developmental activities in the Western Hemisphere. 
The Board shall, from time to time, consult with the Council con- 
cerning the objectives of the Foundation. ^lembers of the Council shall 
receive no compensation for their services but shall be entitled to 
reimbursement in accordance with section 5703 of title 5, United 
States Code, for travel and other expenses incurred by them in the 
performance of tlieir functions under this subsection. 

(n) The Foundation shall be a nonprofit corporation and shall have 
no capital stock. No part of its revenue, earnings, or other income or 
property shall inure to the benefit of its directors, officers, and em- 
ployees and such revenue, earnings, or other income, or property 
shall be used for the carrying out of the corporate purposes set forth 
in this section. No director, officer, or employee of the corporation 
shall in any mariner directly or indirectly participate in the delibera- 
tion upon or the determination of any question affecting his personal 
interests or the interests of any corporation, partnership, or organiza- 
tion in which he is directly or indirectly interested. 

(o) When approved by the Foundation, in furtherance of its pur- 
pose, the officers and employees of the Foundation may acceot and hold 
offices or positions to vrhich no compensation is attached with govern- 
ments or governmental agencies of foreign countries. 

(p) The Secretary of State shall have authority to detail employees 
of any agency under his jurisdiction to the Foundation under such cir- 
cumstances and upon such conditions as he may determine. Any such 
employee so detailed sliall not lose any privileges, rights, or seniority 
as an employee of any such agency by virtue of such detail. 

(q) The Foundation shall establish a principal office. The Founda- 
tion is authorized to establish agencies, branch offi.ces, or other offices in 
any place or places within the United States or elsewhere in any of 
which locations the Foundation may carry on all or any of its opera- 
tions and business. 

(r) The Foundation, including its franchise and income, shall be 
exempt from taxation now or hereafter imposed by the United States, 
or any territory or possession thereof, or by any State, countj^-, munici- 
pality, or local taxing authority. 

•Section 406(5) of tbe Foreign Assistance Act of 1971 amended section 401(1), which 
formerly read as follows: "(1) The chief eiecntive officer of the Institute shall be an 
Executive Director who shall be appointed by the Board of Directors on such terms as the 
Board may determine. The Executive Director shall receive compensation at the rate 
provided for level IV of the Executive Schedule under section 5315 of title V, United 
States Code.** 

65-998—76 13 



176 



(s) Notwithstanding any other provision of law, not to exceed an 
aggregate amount of $50,000,000 of the funds made available for the 
fiscal years 1970 and 1971 to carry out part I of the Foreign Assist- 
ance Act of 1961 shall be available to carry out the purposes of this 
section. Funds made available to carry out the purposes of this sec- 
tion under the preceding sentence are authorized to remain available 
until expended/ 

(t) The Foundation shall be subject to the provisions of the Govern- 
ment Corporation Control Act. 

Part V — Amendments to Other Acts 

Sec. 501. Section 101 of the Government Corporation Control Act 
(81 U.S.C. 846) is amended by striking out "Development Loan 
Fund;" and inserting in lieu thereof "Overseas Private Investment 
Corporation 

Sec. 502. (a) Section 3343(b) of title 5, United States Code, re- 
lating to details of personnel to international organizations, as 
amended — 

(1) by striking out "3" and inserting in lieu thereof "5"; and 

(2) by striking out the period at the end of such section and 
inserting in lieu thereof a comma and the following: "except 
that under special circumstances, where the President determines 
it to be in the national interest, he may extend the 5-year period 
for up to an additional 3 j^ears." 

(b) Section 3581(5) of such title, relating to reemployment rights 
of personnel who transfer to international organizations, is amended 
by striking out "the first 3 consecutive years after entering the employ 
of the international organization" and inserting in lieu thereof the 
following: "the first 5 consecutive years, or any extension thereof, 
after entering the employ of the international organization". 

(c) Section 3582 (a) of such title, relating to rights of personnel who 
transfer to international organizations, is amended — 

(1) by inserting in clause (1), before the semicolon at the end 
thereof, a comm.a and the following: "except that such service 
shall not be considered creditable service for the purpose of any 
retirement system for transferring personnel, if such service 
forms the basis, in whole or in part, for an annuity or pension 
under the retirement system of the international organization"; 
and 

(2) by striking out clause (2) and inserting in lieu thereof the 
following: 

"(2) to retain coverage, rights, and benefits under chapters 87 
and 89 of this title, if necessary employee deductions and agency 
contributions in payment for the coverage, rights, and benefits 
for the period of employment with the international organization 

^ FA Appropriation Act, 1975, Title I, Intpr-American Foundation : "The Inter- Am oricnn 
Foundation is authnrlzeri to make such expenditurea within the limits of funds available 
to it and in accorrlanco with the law, and to make such contracts and commitments 
without regard to fiscal year limitations as provided hy section 104 of tlie Government 
Corporation Control Act. as amended (31 U.S.C. 849). as may be necessary in carrying 
out its authorized programs during the current fiscal year: Provided, That not to excH^d 
$10,000,000 shall be available to carry out the authorized programs during the current 
fiscal year." 



177 



are currently deposited in the Employees' Life Insurance Fund 
and the Employees' Health Benefits Fund, as applicable, and 
the period during which coverage, rights, and benefits are retained 
xmder this paragraph is deemed service as an employee under 
chapters 87 and 89 of this title,". 

(d) Section 3582(b) of such title, relating to rights of employees! 
transferring to international organizations, is amended — 

(1) by striking out, except a Congressional employee," in the 
first sentence ; 

(2) by striking out of clause (1) "3 years" and inserting in lieu 
thereof "5 years, or any extension thereof," ; and 

(3) by inserting at the end thereof the following new sentences: 
"On reemployment, he is entitled to be paid, under such regula- 
tions as the President may prescribe and from appropriations or 
funds of the agency from which transferred, an amount equal to 
the difference between the pay, allowances, post differential, and 
other monetary benefits paid by the international organization 
and the pay, allowances, post differential, and other monetary 
benefits that would have iDeen paid by the agency had he been de- 
tailed to the international organization mider section 3343 of this- 
title. Such a payment shall be made to an employee who is unable 
to exercise his reemployment right because of disability incurred 
while on transfer to an international organization under this sub- 
chapter and, in the case of any employee who dies while on such 
a transfer or during the period after separation from the inter- 
national organization in which he is properly exercising or could 
exercise his reemployment right, in accordance with subchapter 
VIII of chapter 55 of this title. This subsection does not apply 
to a congressional employee nor may any payment provided for in 
the preceding two sentences of this subsection be based on a period 
of emT)loyment with an international organization occurring be- 
fore the first day of the first pay period which begins on or after 
the date of enactment of the Foreign Assistance Act of 1969." 

(e) Section 3582(c) of such title, relating to rights of employees 
transferring to international organizations, is amended by striking 
out "3 years" and inserting in lieu thereof the following : "5 years, or 
any extension thereof,". 

(f) Section 3582(d) of such title, relating to agency contributions 
to retirement and insurance programs for personnel who transfer to 
international organizations, is amended to read as follows : 

"(d) During the employee's period of service with the international 
organization, the agency from which the employee is transferred shall 
make contributions for retirement and insurance purposes from the 
appropriations or funds of that agency so long as contributions are 
made by the employee." 

Sec. 503. Subchapter II of chapter 53 of title 5, United States Code, 
is amended — • 

(1) by insertinjT at the end of pection 5314, relating to level III 
of the Executive Schedule, the following: 
"(54) President, Overseas Private Investment Corporation."; 



178 

(2) by inserting at the end of section 5315, relating to level IV 
of the Executive Schedule, the following : 

"(92) Executive Vice President, Overseas Private Investment 
Corporation." ; and 

(3) by inserting at the end of section 5316, relating to level 
V of the Executive Schedule, the following : 

" ( 128 ) Auditor-General of the Agency for International Devel- 
opment. 

"(129) Vice Presidents, Overseas Private Investment Corpora- 
tion (3)." 



h. Foreign Assistance Act of 1968 

Public Law 90-554 [H.R. 15263], 82 Stat. 960, approved October 8, 

1968 



Note. — Except for Part lY, wliich related to amendments to 
other acts, and Part V, wHch related to reappraisal of foreign 
assistance programs, the Foreign Assistance Act of 1968 con- 
sisted of amendments to the Foreign Assistance Act of 1961, as 
amended. 



i. Foreign Assistance Act of 1967 
Public Law 90-137 [S. 1872], 81 Stat. 445, approved November 14, 1967 



Note. — The Foreign Assistance Act of 1967 consists of amend- 
ments to the Foreign Assistance Act of 1961, the Joint Resolution to 
authorize participation by the United States in parliamentary con- 
ferences of the North Atlantic Treaty Organization, the Act to 
authorize participation by the United States in the Interparliamen- 
tary Union, and the Mutual Security Act of 1954. 



j. Foreign Assistance Act of 1966 
Public Law 89-583 [H.R. 15750], 80 Stat. 795, approved September 19, 1966 



Note. — The Foreign Assistance Act of 1966 consists wholly of 
amendments to the Foreign Assistance Act of 1961, as amended. 



k. Foreign Assistance Act of 1965 

Public Law 89-171 [H.R. 7750], 79 Stat. 653, approved September 6, 1965 

Chapter 4 — Amendment to the Agricultural Trade Development 
AND Assistance Act op 1954 

(179) 



180 



Note. — ^Except for Chapter 4, which relates to an amendment 
to section 107 of the Agricultural Trade Development and As- 
sistance Act of 1954, the Foreign Assistance Act of 1965 consists 
of amendments to the Foreign Assistance Act of 1961, as 
amended. 

Section 107 is now contained in Section 103(d) (4) of the Agri- 
cultural Trade Development and Assistance Act of 1954, as 

amended. For text, see page 288. 



1. Foreign Assistance Act of 1964 

Partial text of Public Law 88-€33 [H.R. 11380], 78 Stat. 1009, approved 

October 7, 1964 



Note. — ^Except for the provisions quoted here, the Foreign 
Assistance Act of 1964 consists of amendments to the Foreign 
Assistance Act of 1961, the Act to authorize participation by the 
United States in the Interparliamentary Union, and the Mutual 
Security Act of 1954. 



41 * « * * ♦ • 

Part V — Eeligious Persecution 

Sec. 501.* It is the sense of the Congress that the United States 
deeply believes in the freedom of religion for all people and is opposed 
to infringement of this freedom anywhere in the world. The Con- 
gress condemns the persecution of any persons because of their re- 
ligion. It is further the sense of Congress that all persons should be 
permitted the free exercise of religion and the pursuit of their culture. 

m. Foreign Assistance Act of 1963 
Public Law 88-205 [H.R. 7885], 77 Stat. 379, approved December 16, 1963 



Note. — The Foreign Assistance Act of 1963 consists of amend- 
ments to the Foreign Assistance Act of 1961, the Latin American 
Development Act, the Trade Expansion Act of 1962, the Agri- 
cultural Trade Development and Assistance Act of 1954, the For- 
eign Service Act of 1946, the Act to provide certain basic authority 
for the Department of State, and the Act to authorize participation 
by the United States in parliamentary conferences of the North 
Atlantic Treaty Organization. 



» 22 U.S.C. S 2151. 



181 

n. Foreign Assistance Act of 1962 
Public Law 87-565 [S. 2996], 76 Stat. 255, approyed August 1, 1962 



Note. — The Foreign Assistance Act of 1962 consists of amend- 
ments to the Foreign Assistance Act of 1961, the Act to provide 
certain basic authority for the Department of State, the Mutual 
Educational and Cultural Exchange Act of 1961, and the Act au- 
thorizing participation by the United States in the Interparliamen- 
tary Union. 



2. Foreign Assistance Appropriations 

a. Joint Resolution [Temporary Anpropriations for 
Fiscal Year 1976] 

Partial text of Public Law 94-141 [H.J. Res. 499], 89 Stat. 225, approved June 27, 
1975, as amended by Public Law 94-159 [H.J. Res. 733], 89 Stat. 847, approved 
December 20, 1975 



NoTE.--At publication time of this volume, neither the le.gisla- 
tion m^aking- appropriations for Foreign Assistance for fiscal year 
1976 had not been enacted. 



JOINT RESOLUTION Mailing continuing appropriations for the fiscal year 1976, 

and for other purposes 

Resolved hy the Senate and Hov^e of Representatives of the United 
States of Ame?^ica in Congress assembled. That the following sums are 
appropriated out of any money in the Treasury not otherwise apjDro- 
priated, and out of applicable corporate or other revenues, receipts 
and funds, for the several departments, agencies, corporations, and 
other organizational units of the Government for the fiscal year 1976, 
namely : 

Sec. 101. (a) (1) Such amounts as may be necessary for continuing 
projects or activities (not otherwise specifically provided for in this 
joint resolution) which were conducted in the fiscal j^ear 1975 and for 
which appropriations, funds, or other authority would be available in 
the following appropriation Acts for the fiscal year 1976 : 

« * ^ 4: * ^ 

Departments of State, Justice, and Commerce, the Judiciary, 
and Related Agencies Appropriation Act, notwithstanding sec- 
tion 15(a) of the Act entitled, ''An Act to provide certain basic 
authority for the Department of State", approved August 1, 1956, 
as amended, and section 701 of the United States Information and 
Educational Exchange Act of 1948, as amended. 

(2) Appropriations made by this subsection shall be available to the 
extent and in the manner which would be provided by the pertinent 
appropriation Act. 

(3) T^Tienever the amount which would be made available or the 
authority which would be granted imder an Act listed in this sub- 
section as passed by the House as of July 1, 1975, is different from that 
which would be available or granted under such Act as passed by the 
Senate as of July 1, 1975, the pertinent project or activity shall be 
continued under the lesser amount or the more restrictive authority : 



(182) 



183 



Provided, That no provision in any appropriation Act for the, fiscal 
year 1976, which makes the availability of any appropriation pro- 
vided therein dependent upon the enactment of additional authorizing 
or other legislation, shall be elective before the date set forth in sec- 
tion 102 (c) of this joint resolution. 

(4) Whenever an Act listed in this subsection has been passed by 
only one House as of July 1, 1975, or where an item is included in only 
one version of an Act as passed by both Houses as of July 1, 1975, 
the pertinent project or activity shall be continued under the appro- 
priation, fund, or authority granted by the one House, but at a rate 
for operations not exceeding the current rate or the rate permitted by 
the action of the one House, whichever is lower, and under the author- 
ity and conditions provided in applicable appropiration acts for the 
fiscal year 1975 : Provided, That no pro^nsion which is included in an 
appropriation Act enumerated in this subsection but which was not 
included in the applicable appropriation Act for 1975, and which 
by its terms is applicable to more than one appropriation, fund, or 
authority shall be applicable to any appropriation, fund, or authority 
provided in this joint resolution unless such provision shall have been 
included in identical form in such bill as enacted by both the House 
and the Senate. 

(b) Such amounts as may be necessary for continuing projects or 
activities (not otherwise provided for in this joint resolution) which 
were conducted in the fiscal year 1975 and are listed in this subsection 
at a rate for operations not in excess of the current rate or the rate 
provided for in the budget estimate, whichever is lower, and under the 
more restrictive authority — 

******* 

activities for which provision was made in the Foreign Assist- 
ance and Related Programs Appropriations Act, 1975, notwith- 
standing section 10 of Public Law 91-672, and section 15(a) of 
the Act entitled, "An Act to provide certain basic authority for 
the Department of State", approved August 1, 1956, as amended; 
******* 

(e) Such amounts as may be necessary for continuing the following 
activities, but at a rate for operations not in excess of the current rate 
unless otherwise provided specifically in this subsection: Provided^ 
That the parenthetical clauses of sections 101(a) and 101(b), and the 
provisions of sections 102, 103. and 105 shall not apply to the third 
seventh, eighth, ninth, tenth, eleventh, and twelfth unnumbered para- 
graphs of this subsection — 

******* 

notwithstandinjz the sixth clause of subsection (b) of this sec- 
tion, activities of the Department of State for assistance to re- 
fugees from the Soviet Union shall be funded at not to exceed an 
annual rate for obligations of $20,000,000, notwithstanding section 
15(a) of the Act entitled, "An Act to refugees from the Soviet 
Union shall be funded at not to provide certain basic authority 
for the Department of State", approved August 1, 1956, as 
amended, and section 10 of Public Law 91-672 ; notwithstanding 



184 



the sixth clause of subsection (b) of this section, activities of the 
Department of Health, Education, and Welfare for assistance to 
refugees in the United States (Cuban Program) shall be funded 
at not to exceed the annual rate for obligations of $90,000,000. 
^ ^ ^ ^ ^ ^ ^ 

Sec. 102. Appropriations and funds made available and authority 
granted pursuant to this joint resolution shall be available from July 1, 
1975, and shall remain available imtil (a) enactment into law of an 
appropriation for any project or activity provided for in this joint 
resolution, or (b) enactment of the applicable appropriation Act by 
both Houses without any provision for such project or activity, or (c) 
sine-die adjournment of the first session of the Ninety-fourth Congress, 
whichever first occurs. 

Sec. 103. Appropriations and funds made available or authority 
granted pursuant to this joint resolution may be used without regard 
to the time limitations for submission and approval of apportionments 
set forth in 31 U.S.C. 665 (d) (2) , but nothing herein shall be construed 
to waive any other provision of law govel^ning the apportionment 
of funds. 

Sec. 104. Appropriations made and authority granted pursuant to 
this joint resolution shall cover all obligations or expenditures incurred 
for any project or activity during the period for which funds or 
authority for such project or activity are available under this joint 
resolution. 

Sec. 105. Expenditures made pursuant to this joint resolution shall 
be charged to the applicable appropriation, fund, or authorization 
whenever a bill in which such applicable appropriation, fund, or 
authorization is contained is enacted into law. 

Sec. 106. No appropriation or fund m.ade available or authority 
granted pursuant to this joint resolution shall be used to initiate or 
resume any project or activity for which appropriations, funds, or 
other authority were not available during the fiscal years 1975. 

Sec. 107. Any appropriation for the fiscal year 1976 required to be 
apportioned pursuant to 31 U.S.C. 665, may be apportioned on a basis 
indi^atinfif the need (to the extent any such increases cannot be 
absorbed within available appropriations) for a supplemental or de- 
ficiency estimate of appropriation to the extent necessary to permit 
payment of such pay increases as may be granted pursuant to law 
to civilian officers and employees and to active and retired military 
personnel. Each such appropriation shall otherwise be subject to the 
reouiremputs of 31 U.S.C. 665. 

Sec. lOS. All oblii^ations incurred in anticipation of the appropria- 
tions and authority provided in this joint resolution are hereby 
ratified and confirmed if otherwise in accordance with the provisions 
of this joint resolution. 

Sec. 100. None of the funds herein made available shall be obligated 
or expended to finnnce directly or indirectly any assistance to North 
Vietnam, South Viptnam, Cambodia, or Laos, nor shall any funds 
herein made available be channeled through or administered by inter- 



iPnhlip Lfiw 94-159. nnprovpd Pecpmbpr 20. 1975. <3nbsi-1 tnfpr! the word*? "March 
1976" in lieu of "sine die adjournment of the first session of the Ninety-fourth Congress." 



185 



national organizations, United Nations organizations, multilateral 
organizations, voluntary agencies, or any other comparable organiza- 
tions or agencies in order to finance any assistance to North Vietnam, 
South Vietnam, Cambodia, or Laos. 

Sec. 110. Any provision of law which requires unexpended funds 
to return to the general fund of the Treasury at the end of the fiscal 
year shall not be held to affect the status of any lawsuit or right of 
action involving the right to those funds. 

Sec. 111. Unobligated balances as of June 30, 1975, of funds here- 
tofore made available under the authority of Chapter X of Part I of 
the Foreign Assistance Act of 1961, as amended, are hereby continued 
available for the same general purposes for which appropriated. 



b. Joint Resolution [Temporary Appropriations for 
Fiscal Year 1976] 

Public Law 94-159 [H.J. Res. 733], 89 Stat. 847, approved December 20, 1975 

JOINT RESOLUTION Making further continuing appropriations for the fiscal 
year 1976, and for other purposes 

Resolved hy the Senate and House of Representatives of the United 
States of America in Congress assembled^ That clause (c) of section 
102 of the joint resolution of June 27, 1975 (Public Law 94-^1), is 
hereby amended by striking out "sine die adjournment of the first 
session of the Ninety-fourth Congress" and inserting in lieu thereof 
"March 31, 1976". 

(186) 



c. Joint Resolution [Temporary Appropriations for Fiscal Year 

1975] 

Partial text of Public Law 93-324 [H.J. Res. 1062], 88 Stat. 281, approved 
June 30, 1974, as amended bv Public Law 93-448 [H.J. Res. 1167], 88 Stat. 
1963, approved October 17, 1974, Public Law 93-570 [H.J. Res. 1178], 88 Stat. 
1867, approved December 31, 1974, and Public Law 94-7 [H.J. Res. 219], 89 
Stat. 13, approved JMarch 14, 1975 

JOINT RESOLUTION Making continuing appropriations for the fiscal year 1975, 

and for other purposes 

Resolved hy the Senate and House of Representatives of the United 
States of America in Congress assembled^ That the following sums are 
appropriated out of any money in the Treasury not otherwise appro- 
priated, and out of applicable corporate or other revenues, receipts, 
and funds, for the se^-eral departments, agencies, corporations, and 
other organizational units of the Government for the fiscal year 1976, 
namely : 

Sec. 101. (a) (1) * * * 

* * * * it * ♦ 

Departments of State, Justice, and Commerce, the Judiciary, 
and Related Agencies Appropriation Act, not withstanding sec- 
tion 701 of the United States Information and Educational Ex- 
change Act of 1948, as amended ; 

******* 

(b) Such amounts as may be necessary for continuing projects or 
activities (not otherwise provided for in this joint resolution or other 
enacted Appropriation Acts for the fiscal year 1975) which were con- 
ducted in the fiscal year 1974 and are listed in this subsection at a 
rate for operations not in excess of the current rate or the rate provided 
for in the budget estimate, whichever is lower, and under the more 
restrictive authority — 

* * * ii( * * * 

activities for which provision was made in the Department of 
Defense Appropriation Act, 1974 : Provided^ That the continua- 
tion of support for South Vietnamese miltiary forces shall be 
administered and accounted for from one fund, at an annual rate 
of $1,000,000,000, to be obligated only by the issuance of orders by 
the Secretary of Defense for such support: Provided further^ 
That the fund for support of Vietnamese military forces shall be 
deemed obligated at the time the Secretary of Defense issues 
orders authorizing support of any kind, which obligations shall 
in the case of non-excess materials and supplies to be furnished 
from the inventory of Department of Defense be equal to the 
replacement costs thereof at the time such obligation is incurred 



(187) 



188 



and in the case of excess materials and supplies be equal to the 
actual value thereof at the time such obligation is incurred: 
Provided further^ That none of the activities for support of South 
Vietnamese military forces contained in this paragraph should 
be funded at a rate exceeding one quarter of the annual rate as 
provided by this joint resolution ; 

activities for which provision was made in the Foreign Assist- 
ance and Belated Programs Appropriations Act, 1974, notwith- 
standing section 10 of Public Law 91-672, and section 655 (c) of 
the Foreign Assistance Act of 1961, as amended:^ Provided^ 
That in computing the current rate of operations of military 
assistance there shall be included the amount of obligations in- 
curred in Department of Defense appropriations during the fiscal 
year 1974 for military assistance to Laos ; 

******* 

Sec. 102. Appropriations and funds made available and authority 
granted pursuant to this joint resolution ^ shall be available from 
July 1, 1974, and shall remain available until (a) enactment into law 
of an appropriation for any project or activity provided for in this 
joint resolution, or (b) enactment of the applicable appropriation Act 
by both Houses without any provision for such project or activity, or 
(c) September 30, 1974, whichever first occurs.^ 

Sec. 103. Appropriations and funds made available or authority 
granted pursuant to this joint resolution may be used without regard 
to the time limitations for submission and approval of apportionments 
set forth in subsection (d) (2) of section 3679 of the Revised Statutes, 
as amended, but nothing herein shall be construed to waive any other 
provision of law governing the apportionment of funds. 

Sec. 104. Appropriations made and authority granted pursuant to 
this joint resolution shall cover all obligations or expenditures incurred 
for any project or activity during the period for which funds or 
authority for such project or activity are available under this joint 
resolution. 

Sec. 105. Expenditures made pursuant to this joint resolution shall 
be charged to the applicable appropriation, fund, or authorization 
whenever a bill in which such applicable appropriation, fund, or 
authorization is contained is enacted into law. 



1 Sec. 3 of Public Law 93-448, approved October 17, 1974, substituted the proviso at 
this point. The former proviso read as follows : "Provided, That in computing the current 
rate of operations of military assistance there shall be included: (1) the amount of con- 
tract authority used during the fiscal year 1974 pursuant to section 50(5 (a) of the For- 
eign Assistance Act of 1961, as amended, for military assistance to Cambodia, and (2) 
the amount of obligations incurred in Department of Defense appropriations during the 
fiscal year 1974 for military assistance to Laos ;". An additional proviso ^-as added by 
Sec. 3 of Public Law 93-570 : approved December 31, 1974 : Provided further. That all 
of the provisions, restrictions, and prohibitions contained in the Foreign Assistance Act of 
1974 and in the Foreign Assistance Act of 1961, as amended, shall apply to funds made 
available herein for activities for which provision was made in the Foreign Assistance and 
Related Appropriations Act of 1974 ;". 

2 Public Law 93-448. approved October 17. 1974. added the words "or, In the case of 
the Unitod States Information Agency, enactment of authorizations of appropriations for 
the fiscal year 1975 for that Agency" at this point. 

3 Public Law 93-488, approved October 17, 1974, substituted the words "sine die ad- 
journment of the second session of the Ninety-third Congress' in lieu of "September 30, 
1974". Public Law 93-570, approved December 31, 1974, substituted "February 28, 1975" 
In lieu of "sine die adjournment of the second session of the Ninety-third Congress". 
Public Law 94-7, approved March 14, 1975, substituted "June 30, 1975" for "February 28, 



189 



Seo. 106. Except as provided in section 101(e) no appropriation or 
fund made available or authority granted pursuant to this joint res- 
olution shall be used to initiate or resume any project or activity for 
Tvhich appropriations, funds, or other authority were not available 
during the fiscal year 1974. 

Sec. 107. Any appropriation for the fiscal year 1975 required to be 
apportioned pursuant to section 3679 of the Revised Statutes, as 
amended, may be apportioned on a basis indicatintr the need (to the 
extent any such increases caimot be absorbed within available appro- 
priations) for a supplemental or deficiency estimate of appropriation 
to the extent necessary to permit payment of such pay increases as 
may be granted pursuant to law to civilian officers and employees and 
to active and retired military personnel. Each such appropriation shall 
otherwise be subject to the requirements of section 3679 of the Eevised 
Statutes, as amended. 

Sec. 108. All obligations incurred in anticipation of the appro- 
priations and authority provided in this joint resolution are hereby 
ratified and confirmed if otherwise in accordance with the provisions 
of this joint resolution. 

Sec. 109. None of the funds herein made available shall be expended 
to aid or assist in the reconstruction of the Democratic Republic of 
Vietnam (North Vietnam). 

Sec. 110. None of the funds herein made available shall be obligated 
or expended to finance directly or indirectly combat activities by 
United States military forces in or over or from off the shores of 
North Vietnam, South Vietnam, Laos, or Cambodia. 

Sec. 111. Any provision of law which requires unexpended funds 
to return to the general fund of the Treasury at the end of the fiscal 
year shall not be held to afi*ect the status of any lawsuit or right of 
action involving the right to those funds. 

Sec. 112.* Notwithstanding any other provision of this joint reso- 
lution or any other Act, the President is authorized to use funds made 
available for foreign assistance by this joint resolution but not to 
exceed $15,000,000, to provide, on such terms and conditions as he 
may determine, relief, rehabilitation, and reconstruction assistance in 
connection with the damage caused by floods in Honduras and Bangla- 
desh and by civil strife in Cyprus. 

Sec. 113.* None of the funds made available for foreign assistance by 
this joint resolution may be used to purchase fertilizer in the United 
States for export to South Vietnam. 

Sec. 114.^ Notwithstanding any other provision of this joint reso- 
lution or any other Act, including section 10 of the Foreign IVIilitary 
Sales Act Amendments, 1971, as amended, the following amounts are 
hereby made available, in addition to funds otherwise available under 
this joint resolution, for the following purposes : 

Security Supporting Assistance for Israel, $150,000,000; 
Security Supporting Assistance for Egypt, $150,000,000 ; 
Middle East Special Requirements Fund, $25,000,000; 
Assistance to Portugal and Portuguese Colonies, $10,000,000 ; 



^ Sections 112 and 113. were added by Sections 4 and 5, respectively, of Public Law 
93-448. approved October 17, 1974. 

s Section 4 of Public Law 93-570, approved December 31, 1974, added Section 114. 



190 



Famine and Disaster Relief for Cyprus, $15,000,000; 
Assistance to Refugees from the Soviet Union, $10,000,000 ; and 
Assistance to Palestinian Refugees, $10,000,000 : 
Provided^ That all of the provisions, restrictions, and prohibitions 
contained in the Foreign Assistance Act of 1974 and in the Foreign 
Assistance Act of 1961, as amended, shall apply to the funds made 
available in this section. 



Note. — Public Law 94-7, making further continuing appro- 
priations for the fiscal year 1975, also stated : ^''Provided tiowever^ 
That, notwithstanding any other provision of this joint resolu- 
tion or any other Act, the appropriations and funds made 
available and authority granted pursuant to the fourth unnum- 
bered clause of section 101 (b) and sections 112 and 114 of such 
joint resolution as amended relating to foreign assistance and 
related programs appropriations shall remain available until 
March 25, 1975.*' 



d. Joint Resolution [Temporary Appropriations for Fiscal Year 

1975] 

Partial text of Public Law 93-448 [H.J. Res. 1167], 88 Stat. 1363, approved October 
17, 1974, as amended by Public Law 93-570 [H.J. Res. 1178], 88 Stat. 1867, 
approved December 31, 1974 

JOINT RESOLUTION Makinj? further continuing: appropriations for tlie fiscal 
year 1975, and tor other purposes 
******* 

Sec. 6.^ None of the funds herein made available shall be obligated 
or expended for any military assistance, or for any sales of defense 
articles and services (whether for cash or by credit, guaranty, or any 
other means) , or for any licenses with respect to the transportation of 
arms, ammunitions, and implements of war (including technical data 
related thereto) to the Government of Turkey unless and until the 
President determines and certifies to the Congress that the Government 
of Turkey is in compliance with the Foreign Assistance Act of 1961, 
the Foreign Military Sales Act, and any agreement entered into under 
such Acts, and that substantial progress toward agreement has been 
made regarding military forces in Cyprus ; Provided^ That the Presi- 
dent is authorized to suspend the provisions of this section and said 
Acts if he determines that such suspension will further negotiations 
for a special solution of the Cyprus conflict. Anv such suspension shall 
be effective only until February 5, 1975, and only if, during that time, 
Turkey shall observe the cease-fire and shall neither increase its forces 
on Cyprus nor transfer to C^^prus any United States supplied imple- 
ments of war. 



1 Sec. 6 was amended by Sec. 5 of Public Law 93-570, approved December 31, 1974. It 
formerly read as follows : "Sec. 6. None of the funds herein made available shall be obli- 
gated or expended for military assistance, or for snles of defense articles and services 
(whether for cash or by credit, guaranty, or any other means) or for the transportation 
of any military equipment or supplies to l^irkey until and unless the Presidpnt certifies 
to the Congress that the Government of Turkey is in compliance with the Foreign As- 
sistance Act of 1961, the Foreign Military Sales Act. and any agreement entered into 
under such Acts, and that substantial progress toward agreement has been made regard- 
ing military forces in Cyprus ; Provided, That the President is authorized to suspend the 
provisions of this section and said Acts if he determines that such suspension will further 
negotiations for a peaceful solution of the Cyprus conflict. Any such susoension shall he 
effective only until December 10, 1974 and only if. during tliat time, Turkey shall ob- 
serve the ceasefire and shall neither increase its forces on Cyprus nor transfer to Cyprus 
any C.S. supplied implements of war." 

(191) 



65-998—76 14 



e. Foreign Assistance and Related Programs Appropriation Act, 

1975 

Public Law 94-11 [H.R. 4592], 89 Stat. 17, approved March 26, 1975 

AN ACT Making appropriations for Foreign Assistance and related programs 
for the fiscal year ending June 30, 1975, and for otlier purposes 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That the following 
sums are appropriated, out of any money in the Treasury not otherwise 
appropriated, for Foreign Assistance and related programs for the 
fiscal year ending June 30, 1975, and for the other purposes, namely : 

TITLE I— FOREIGN ASSISTANCE ACT ACTIVITIES 

Funds Appropriated to the President 

For expenses necessary to enable the President to carry out the pro- 
visions of the Foreign Assistance Act of 1961, as amended,^ and for 
other purposes, to remain available until June 30, 1975, unless other- 
wise specified herein, as follows : 

ECONOMIC ASSISTANCE 

Food and nutrition. Development Assistance: For necessary ex- 
penses to carry out the provisions of section 103, $300,000,000: Pro- 
vided, That in addition to the amounts provided for loans to carry out 
the purposes of this paragraph, such amounts as are provided for under 
section 203 shall also be available for loans, together all such amounts 
to remain available until expended. 

Population planning and health, Development Assistance : For nec- 
essary expenses to carry out the provisions of section 104, $125,000,000 : 
Provided^ That in addition to the amounts provided for loans to carry 
out the purposes of this paragraph, such amounts as are provided for 
under section 203 shall also be available for loans, together all such 
amounts to remain available until expended: Provided further^ That 
not more than $110,000,000 appropriated or made available under this 
Act shall be used for the purposes of section 291 during 1:he current 
fiscal year. 

Education and human resources development. Development Assist- 
ance : For necessary expenses to carry out the provisions of section 105, 
$82,000,000 : Provided^ That in addition to the amounts provided for 
loans to carry out the purposes of this paragraph, such amounts as are 



1 For text see p. 5. 



(192) 



193 



provided for under section 203 shall also be available for loans, to- 
gether all such amounts to remain available until expended. 

Selected development problems, Development Assistance : For neces- 
sary expenses to carry out the provisions of section 106, $37,000,000, of 
which not more than $500,000 shall be available for the National As- 
sociation of the Partners of the Alliance, Inc. : Provided^ That in addi- 
tion to the amount proAdded for loans to carry out the purposes of this 
paragraph, such amounts as are provided for under section 203 shall 
also be available for loans, together all such amounts to remain avail- 
able until expended. 

Selected countries and organizations. Development Assistance : For 
necessary expenses to carry out the provisions of section 107, $30,000,- 
000: Provided^ That in addition to the amounts provided for loans 
to carry out the purposes of this paragraph, such amounts as are pro- 
vided for under section 203 shall also be available for loans, together 
all such amounts to remain available until expended. 

Loan allocation, Development Assistance: Of the new obligational 
authority appropriated under this Act to carry out the provisions of 
sections 103-107, not less than $175,000,000 shall be available for loans. 

International organizations and programs : F or necessary expenses 
to carrv out the provisions of section 301, $125,000,000, of which not 
more than $17,000,000 shall be available for the United Nations Chil- 
dren's Fund : Provided. That none of the f imds appropriated or made 
available pursuant to this Act shall be used to supplement the funds 
provided to the United Nations Development Program in fiscal year 
1974. ^ 

United Nations Environment Fund: For necessary expenses to 
carry out the provisions of section 2 of the United Nations Environ- 
ment Program Participation Act of 1973, $5,000,000. 

American schools and hospitals abroad: For necessary expenses to 
carry out the provisions of section 214, $17,500,000. 

American schools and liospitals abroad (special foreign currency 
program) : For necessary expenses to carry out the provisions of sec- 
tion 214, $6,500,000 in foreign currencies which the Treasuiy Depart- 
ment determines to be excess to the normal requirements of the United 
States, to remain available until expended. 

Indus Basin Development Fund, grants: For necessary expenses 
to carry out the provisions of section 302(b) (2) with respect to Indus 
Basin Development Fund, grants, $9,000,000 : Provided^ That no other 
funds appropriated or made available under this Act shall be used 
for the purposes of such section during the current fiscal year. 

Indus Basin Development Fund, loans: For expenses authorized 
by section 302(b)(1), $200,000, to remain available until expended: 
Provided. That no other funds appropriated or made available under 
this Act shall be used for the purposes of such section during the cur- 
rent fiscal year. 

Contingency fund: For necessary expenses, $1,800,000, to be used 
for the purposes set forth in section 451. 

International narcotics control : For necessary expenses to carry out 
the provisions of section 481, $17,500,000. 

Famine or disaster relief assistance : For necessary expenses to carry 
out the provisions of section 639, $35,000,000 : Provided, That of the 
funds appropriated under this paragraph, $25,000,000 shall be allo- 
cated to Cyprus. 



194 



Assistance to Portugal and Portuguese colonies in Africa gaining 
independence : For necessary ex])enses to carry out the proyisions of 
section 496, $25,000,000 : Provided, That of the funds appropriated 
under this paragraph, not less tlian $5,000,000 shall be allocated for 
the Cape Verde Islands and not less than $5,000,000 shall be allocated 
for Mozambic^ue, Guinea-Bissau, and Angola. 

Transfer of funds : Payment to the Foreign Seryice Retirement and 
Disability Fund : For payment to the "Foreign Seryice retirement and 
disability fund." as authorized by the Foreio^n Seryice Act of 1946. as 
amended (22 U.S.C. 1105-1106), $16,080,000, of which $15,600,000- 
is to be deriyed from the appropriation proyided to the Department 
of State under this heading in the Department of State Appropriation 
Act. 1975, and $480,000 is to be deriyed by transfer from funds made 
ayailable for deyelopment assistance for fiscal year 1975. 

Administratiye expenses: For necessary expenses, $40,000,000, to 
be used for the purposes set forth in section 637 (a). 

Administratiye and other expenses: For expenses authorized by 
section 637(b) of the Foreign Assistance Act of 1961, as amended,, 
and by section 305 of the Mutual Defense Assistance Control Act of 
1951, as amended,^ $4,800,000. 

Except for the Contingency Fund, unobligated balances as of 
June 30, 1974, of funds heretofore made ayailable under the authority 
of the Foreign Assistance Act of 1961, as amended, except as otherwise 
proyided by law, are hereby continued ayailable for the fiscal year 
1976, for the same general purposes for which appropriated and 
amounts certified pursuant to section 1311 of the Supplemental Appro- 
priation Act, 1955,^ as haying been obligated against appropriations 
heretofore made under the authority of the Foreign Assistance Act 
of 1961, as amended, for the same general purpose as any of the 
subparagraphs under "Economic Assistance," "Middle East Special 
Eequirements Fund," "Security Supporting Assistance," and "Indo- 
china Postwar Reconstruction Assistance," are hereby continued ayail- 
able for the same period as the respectiye appropriations in such 
subparagraphs for the same general purpose: Provided, That such 
unobligated' balances as of Jime SO, 1974, and such amounts certified 
pursuant to section 1311 of the Supplemental Appropriation Act, 
1955, as haying been obligated against appropriations heretofore 
made under the authority of section 531 of the Foreign Assistance 
Act of 1961. as amended, are hereby continued ayailable for the fiscal 
year 1975 for expenses to carry out the proyisions of section 531 or 
section 801 of the Foreign Assistance Act of 1961, as amended : Pro- 
vided further. That such purpose relates to a project or program 
preyiously justifiod to Congress and the Committees on Appropria- 
tions of the House of Representatives and the Senate are notified prior 
to the reobligation of funds for such projects or programs. 

IXDOCHINA POSTWAR RECOXSTKUCTION ASSISTANCE 

Indochina postwar reconstruction assistance: For necessary 
expenses to carry out the proyisions of section 801 of the Foreign 
Assistance Act of 1961, as amended, and section 36(a) of the Foreign 
Assistance Act of 1974, $440,000,000. 



2 For text, see p. 218. 
« For text, see p. 204. 



195 



MIDDLE EAST SPECIAL REQUIREMENTS FUND 

Middle East special requirements fund: For necessary expenses 
•to carry out the provisions of section 901 and section 903 of the 
Foreign Assistance Act of 1961, as amended, $100,000,000. 

SECURITY SUPPORTING ASSISTANCE 

Security supporting assistance: For necessary expenses to carry 
out the provisions of section 531 of the Foreign Assistance Act of 
1961, as amended, $660,000,000 : Provided^ That of the funds appro- 
priated under this paragraph, not less than $324,500,000 shall be 
allocated to Israel and not less than $250,000,000 shall be allocated 
to Egypt and not less than $77,500,000 shall be allocated to Jordan. 

MILITARY ASSISTANCE 

Military assistance: For necessary expenses to carry out the pro- 
visions of section 503 of the Foreign Assistance Act of 1961, as 
amended, including administrative expenses and purchase of pas- 
senger motor vehicles for replacement only for use outside of the 
United States, $475,000,000: Provided^ That none of the fmids con- 
tained in this paragraph shall be available for the purchase of new 
automotive vehicles outside of the United States: Provided further^ 
That the total number of flag and general officers of the United 
States Armed Forces assigned or detailed to military assistance 
advisory groups, military missions, or similar organizations, or per- 
forming duties primarily with respect to the Military Assistance 
Program and the Foreign Military Sales Program shall not exceed 
twenty after May 1, 1975. 

0\^RSEAS PRIVATE INVESTMENT CORPOPvATION 

The Overseas Private Investment Corporation is authorized to 
make such expenditures within the limits of funds available to it and 
in accordance with law (including not to exceed $10,000 for entertain- 
ment allowances), and to make such contracts and commitments with- 
out regard to fiscal year limitations as provided by section 104 of 
the Government Corporation Control Act, as amended (31 U.S.C. 
849), as may be necessar}^ in carrying out the program set forth in 
the budget for the current fiscal year. 

INTER-AMERICAN FOUNDATION * 

The Inter-xVmerican Foundation is authorized to make such expendi- 
tures within the limits of funds available to it and in accordance with 
the law, and to make such contracts and commitments without regard 
to fiscal year limitations as provided by section 104 of the Government 
Corporation Control Act, as amended (31 U.S.C. 849) , as may be neces- 
sary in carrying out its authorized programs during the current fiscal 
year : Provided, That not to exceed $10,000,000 shall be available to 
carry out the authorized programs during the current fiscal year. 



For text of Inter-American Foundation Act, see p. 172. 



196 



GENERAL PROVISIONS 

Sec. 101.^ None of the funds herein appropriated (other than funds 
appropriated for "International organizations and programs" and 
"Indus Basin Development Fund") shall be used to finance the con- 
struction of any new flood control, reclamation, or other water or 
related land resource project or program which has not met the stand- 
ards and criteria used in determining the feasibility of flood control, 
reclamation, and other water and related land resource programs 
and projects proposed for construction within the United States of 
America as per memorandum of the President dated May 15, 1962.^ 

Sec. lO^.'' Except for the appropriations entitled "Contingency 
fund", "Famine or disaster relief assistance", and appropriations of 
funds to be used for loans, not more than 20 per centum of any appro- 
priation item made available by this title shall be obligated and/or 
reserved during the last month of availability. 

Sec. 103.^ None of the funds herein appropriated nor any of the 
counterpart funds generated as a result of assistance hereunder or any 
prior Act shall be used to pay pensions, annuities, retirement pay, or 
adjusted service compensation for any persons heretofore or hereafter 
serving in the armed forces of any recipient country. 

Sec. 104.^ None of the funds appropriated or made available pur- 
suant to this Act for carrying out the Foreign Assistance Act of 1961, 
as amended, may be used for making payments on any contract for 
procurement to which the United States is a party entered into after 
the date of enactment of this Act which does not contain a provision 
authorizing the termination of such contract for the convenience of 
the United States. 

Sec. 105.^° None of the funds appropriated or made available under 
this Act for carrying out the Foreign Assistance Act of 1961, as 
amended, may be used to make payments with respect to any capital 
project financed by loans or grants from the United States where the 
United States has not directly approved the terms of the contracts and 
the firms to provide engineering, procurement, and construction serv- 
ices on such projects. 

Sec. 106.^^ Of the funds appropriated or made available pursuant to 
this Act, not more than $12,000,000 may be used during the fiscal year 
ending June 30, 1975, in carrying out research under section 241 of the 
Foreign Assistance Act of 1961, as amended. 

Sec. 107.^2 None of the funds appropriated or made available pur- 
suant to this Act for carrying out the Foreign Assistance Act of 1961, 
as amended, may be used to pay in whole or in part any assessments, 
arrearages, or dues of any member of the United Nations. • 



" First enacted as section 103 of the Mutual Security Appropriation Act, 1960. 

« See also Sec. 611(b) of the FAAct of 1961, as amended, and Senate Document No. 97, 
"Policies, Standards and Procedures in the Formulation, Evaluation, and Review of Plans 
for the Use and Development of Water and Related Land Resources", dated May 20, 19G2. 
This memorandum also contained in Annex B of AID M.O. 1221.2, October 1. 1964. 

^ First enacted as section 108 of the Mutual Security Appror^riation Act, 1955. 

8 First enacted as section 107 in the Mutnal Security Appropriation Act, 1959. 

•First enacted as section 110 in the Foreign Assistance Appropriation Act, 1963. 

" First enacted as section 112 in Foreiprn Assistance Appropriation Act, 1963. 

" First enacted as section 113 in Foreign Assistance Appropriation Act, 196.3. 

" First enacted as section 114 in Foreign Assistance Appropriation Act, 1964. 



Sec. 108.^3 None of the funds made available by this Act for carrying 
out the Foreign Assistance Act of 1961, as amended, may be obligated 
for financing, in whole or in part, the direct costs of any contract for 
the construction of facilities and installations in any underdeveloped 
country, unless the President shall have promulgated regulations 
designed to assure, to the maximiun extent consistent with the national 
interest and the avoidance of excessive costs to the United States, that 
none of the funds made available by this Act and thereafter obligated 
shall be used to finance the direct costs under such contracts for con- 
struction work performed by persons other than qualified nationals 
of the recipient country or qualified citizens of the United States: 
Provided^ however^ That the President may waive the application of 
this section if it is important to the national interest. 

Sec. 109. None of the funds appropriated or made available pur- 
suant to this Act for carrying out the Foreign Assistance Act of 1961, 
as amended, may be used to finance the procurement of iron and steel 
products for use in Vietnam containing any component acquired by 
the producer of the commodity, in the form in which imported into 
the country of production, from sources other than the United States. 

Sec. 110.^^ None of the funds contained in title I of this Act may be 
used to carry out the provisions of sections 209(d) and 251(h) of the 
Foreign Assistance Act of 1961, as amended. 

Sec. 111. None of the funds appropriated or made available pur- 
suant to this Act shall be used to provide assistance to the Democratic 
Eepublic of Vietnam (North Vietnam). 

Sec. 112. None of the funds appropriated or made available pur- 
suant to this Act, and no local currencies generated as a result of 
assistance furnished under this Act, may be used for the support of 
police, or prison construction and administration within South Viet- 
nam, for training, including computer training, of South Vietnamese 
with respect to police, criminal, or prison matters, or for computers 
or computer parts for use for South Vietnam with respect to police, 
criminal, or prison matters. 

Sec. llfl None of the funds made available under this Act for "Food 
and Nutrition, Development Assistance," "Population Planning and 
Health, Development Assistance," "Education and Human Resources 
Development, Development Assistance," "Selected Development Prob- 
lems, Development Assistance," "Selected Countries and Organiza- 
tions, Development Assistance," "International Organizations and 
Programs," "United Nations Environmental Fund," "American 
Schools and Hospitals Abroad," "Indus Basin Development Fimd," 
"International Narcotics Control," "Assistance to Portugal and Portu- 
guese colonies in Africa gaining independence," "Administrative ex- 
penses, Agency for International Development," "Indochina postwar 
reconstruction assistance," "Security supporting assistance," "Middle 
East special requirements fund," "Military assistance," "Inter- Ameri- 
can Foundation," "Peace Corps," "Migration and refugee assistance," 



"First enacted as section 118 In Foreign Assistance Appropriation Act, 1964. 
" First part of section originally enacted as section 118 in Foreign Assistance Appro- 
priation Act. 1967. 

First enacted as section 121 in Foreicrn Assistance Appropriation Act, 1970. Foreign 
Assistance Appropriation Act, 1971, included reference to section 251 (li), Sec. 101(d) of 
the FAAct of 1971 repealed section 205 and Sec. 101(c)(2) of the FAAct of 1971 added 
reference to section 209(d). 



198 



"Assistance to Refugees From the Soviet Union," or "Assistance to 
Palestinian Kef ugees" shall be available for obligation for activities, 
programs, projects, countries, or other operations unless the Com- 
mittees on Appropriations of the Senate and House of Representatives 
are previously notified fifteen days in advance. 

TITLE II— FOREIGN MILITARY CREDIT SALES 

Foreign Military Credit Sales 

For expenses not otherwise provided for, necessary to enable the 
President to carry out the provisions of the Foreign Military Sales 
Act,^6 $300,000,000: Provided, That of the amount provided for the 
total aggregate credit sale ceiling during the current fiscal year, not 
less than $300,000,000 shall be allocated to Israel. 

TITLE III— FOREIG?^ ASSISTANCE (OTHER) 

Independence Agency 

Action — International Programs 

peace corps 

For expenses, not otherwise provided for, necessary to enable the 
Peace Corps Act (75 Stat. 612), as amended,^^ $77,000-000: Provided, 
That of this amount $44,500,000 shall be available only for the direct 
support of volunteers. 

Department of Health, Education, and WelFx\re 

assistance to refugees in the united states 

For expenses necessary to carry out the provisions of the Migration 
and Refugee xlssistance Act of 1962 (Public Law 87-510) relating to 
aid to refugees within the United States, including hire of passenger 
motor vehicles, and services as authorized by 6 U.S.C. 3109, $90,000,000. 

Department or State 

MIGRATION AND REFUGEE ASSISTANCE 

For expenses, not otherwise provided for, necessary to enable the 
Secretary of State to provide, as authorized by law, a contribution to 
the International Committee of the Red Cross and assistance to refu- 
gees, including contributions to the Intergovernmental Committee for 
European Migration and the United Nations High Commissioner for 
Refugees; salaries and expenses of personnel and dependents as au- 
thorized by the Foreign Service Act of 1946, as amended (22 U.S.C. 
801-1158) ; allowances as authorized by 5 U.S.C. 5921-5925; hire of 
passenger motor vehicles; and services as authorized by 5 U.S.C. 3109; 
$8,420,000, of which not to exceed $8,080,000 shall remain available 



" For text, see p, 253. 
" For text, see p. 327. 
^ For text, see p. 576. 



199 



until December 31, 1975 : Provided, That no funds herein appropriated 
shall be used to assist directly in the migration to any nation in the 
Western Hemisphere of any person not having a security clearance 
based on reasonable standards to insure against Communist infiltra- 
tion in the Western Hemisphere. 

ASSISTANCE TO REFUGEES FROM THE SOVIET UNION 

For necessary expenses to carrv out the provisions of section 101 (b) 
of the Foreigii Relations Authorization Act of 1972, $40,000,000.^^ 

ASSISTANCE TO PALESTINIAN REFUGEES 

For necessarv expenses to provide assistance to Palestinian Refu- 
gees, $10,000,000. 

Funds Appropriated to the President 

International Financial Institutions 

in\t:stment in asian de^telopment bank 20 

For payment by the Secretary of the Treasury of the United States 
to be contributed to the Asian 'Development Bank $74,126,982, to re- 
main available until expended, of which $50,000,000 will be contrib- 
uted to the Special Funds Resources of the Bank as authorized by the 
Act of March 10, 1972, as amended (Public Law 92-245) , and of which 
$24,126,982 will be paid for an increase in the United States subscrip- 
"tion to the paid-in capital of the Ordinarv Capital of the Bank, as 
authorized by the Act of December 22, 1974 (Public Law 93-537). 

investment in inter- AIMERICAN DE\TCL0PMENT BANK 

For payment to the Inter- American Development Bank by the Sec- 
retary of the Treasury for the United States share of the increase in 
the resources of the Fund for Special Operations authorized bv the 
Acts of December 30, 1970 (Public Law 91-599), and March 10,' 1972 
(Public Law 92-246 ) , $225,000,000, to remain available until expended : 
Provided, That of this amount $25,000,000 shall be made available only 
to responsible cooperatives whose primary purpose is to increase the 
productive capacity of rural and urban citizens at the most economi- 
cally disadvantaged level : Provided further, That $10,000,000 of this 
amount shall be made available only to local credit unions or national 
or regional federations thereof, whose primary purpose is to increase 
the productive capacity of rural and urban citizens at the most eco- 
nomically disadvantaged level : Provided further, That $15,000,000 of 
this amount shall be made available only to responsible savings and 
loan associations or other mortgage credit institutions, or national or 
regional federations thereof, whose primary purpose is to provide basic 

"Section 101(b) reads as follows: The Secretary of State is authorized to furnish, on 
terms and conditions he considers appropriate, assistance to Israel or another suitable 
country, including assistance for the resettlement in Israel or fnich country of Jewish or 
other similar refugees from the Union of Soviet Socialist Republics. There are authorized to 
be appropriated to the Secretary not to exceed $85,000,000 to carry out the provisions 
of this subsection. 

20 For text of the Act, see p. 1041. 

^ For text of the Act, see p. 976. 



200 



housing to rural and urban citizens at the most economically disadvan- 
taged level. 

INVESTIVIENT IN INTERNATIONAL DEVELOPMENT ASSOCIATION 

For payment by the Secretary of the Treasury of the third install- 
ment of the United States contribution to the third replenishment of 
the resources of the International Development Association as author- 
ized by the Act of March 10, 1972 (Public Law 92-247) , $320,000,000, 
to remain available until expended. 

TITLE IV— EXPORT-IMPORT BANK OF THE 
UNITED STATES 

The Export-Import Bank of the United States is hereby authorized 
to make such expenditures within the limits of funds and borrowing 
authority available to such corporation, and in accord with law, and 
to make such contracts and commitments without regard to fiscal year 
limitations as provided by section 104 of the Government Corporation 
Control Act, as amended, as may be necessary in carrying out the pro- 
gram set forth in the budget for the current fiscal year for such cor- 
poration, except as hereinafter provided. 

Limitation on Program Activity 

Not to exceed $6,403,086,000 (of which not to exceed $3,395,000,000 
shall be for equipment and services loans) shall be authorized during 
the current fiscal year for other than administrative expenses. 

Limitation on Administrathhe Expenses 

Not to exceed $10,242,000 (to be computed on an accrual basis) shall 
be available during the current fiscal year for administrative expenses, 
including hire of passenger motor vehicles, services as authorized by 
5 U.S.C. 3109, and not to exceed $24,000 for entertainment allowances 
for members of the Board of Directors: Provided^ That (1) fees or 
dues to international organizations of credit institutions engaged in 
financing foreign trade, (2) necessary expenses (including special 
services performed on a contract or a fee basis, but not including other 
personal services) in connection with the acquisition, operation, main- 
tenance, improvement, or disposition of any real or personal property 
belonging to the Bank or in which it has an interest, including 
expenses of collections of pledged collateral, or the investigation or 
appraisal of any property in respect to which an application for a loan 
has been made, and (3) expenses (other than internal expenses of the 
Bank) incurred in connection with the issuance and servicing of guar- 
antees, insurance, and reinsurance, shall be considered as nonadminis- 
trative expenses for the purposes hereof. 

TITLE y— GENERAL PROVISIONS 

Sec. 501.23 No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not heretofore authorized by the Congress. 



22 For text of the Act, see p. 1021. 

^ First enacted as section 102 of the Mutual Security Appropriation Act, 1958. 



201 



Sec. 502.2* No part of any appropriation contained in this Act shall 
he used for expenses of the Inspector General, Foreign Assistance, 
after the expiration of the thirty-five day period which begins on the 
date the General Accoiinting Office or any committee of the Congress, 
or any duly authorized subcommittee thereof, charged with consider- 
ing foreign assistance legislation, appropriations, or expenditures, 
has delivered to the Office of the Inspector General, Foreign Assist- 
ance, a written request that it be furnished any document, paper, 
communication, audit, review, finding, recommendation, report, or 
other material in the custody or control of the Inspector General, 
Foreign Assistance, relating to any review, inspection or audit ar- 
ranged for, directed, or conducted by him, unless and until there has 
been furnished to the General Accounting Office or to such committee 
or subcommittee, as the case may be, (A) the document, paper, com- 
munication, audit, review, finding, recommendation, report, or other 
material so requested or (B) a certification by the President, per- 
sonally, that he has forbidden the furnishing thereof pursuant to such 
request and his reason for so doing.^*^ 

Sec. 503.2^ No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein. 

Sec. 504. None of the funds contained in this Act shall be used 
to furnish petroleum fuels produced in the continental United States 
to Southeast Asia for use by non-United States nationals. 

Sec. 505. No part of any appropriation, funds, or other authority 
contained in this Act shall be available for paying to the Administra- 
tor of the General Services Administration in excess of 00 per centum 
of the standard level user charge established pursuant to section 210(j) 
of the Federal Property and Administrative Services Act of 1949, as 
amended, for space and services. 

This Act may be cited as the "Foreign Assistance and Belated 
Programs Appropriations Act, 1975". 



Note. — Sec. 117 of the Foreign Aid and Related Agencies Ap- 
propriation Act, 1964, provides : "Receipts of United States dol- 
lars in the Development Loan Fund and Alliance for Progress 
revolving funds, derived from loan repayments and interest col- 
lections, may hereafter, when so specified in appropriation Acts, 
be used for the purposes for which such revolving funds are 
available." 



Note. — Section 108 of the Mutual Security Appropriation Act^ 
W56^ as amended hy section 106 of the Mutual Security Appro- 
prlation Act, 1957, reads as follows: 



2* First enacted as section 101(d) of the Mutual Security Appropriation Act, 1960. 
R^eference to Inspector General, Foreign Assistance, was added in FA Appropriation Act, 

25 See also Sees. 624(d) and 634(c) of the FAAct of 1961, as amended. 
First enacted as section 403 in Foreign Assistance Appropriation Act, 1967. 



202 



"Sec. 108. Funds heretofore or hereafter allocated to the De- 
partment of Defense from any appropriation for military assist- 
ance (including funds consolidated with any such appropriation 
but excepting funds obligated directly against any such appropri- 
ation for offshore procurement or other purposes) shall be ac- 
counted for by geographic area and by country solely on the basis 
of the value of materais delivered and services performed (such 
value to be determined in accordance with the applicable provi- 
sions of law governing the administration of military assistance) . 
Within the limits of amounts available from funds so allocated, 
the Department of Defense is authorized to incur, in applicable 
appropriations, obligations in anticipation of reimbursement 
from such allocations, and no funds so allocated and available 
shall be withdrawn by administrative action until the Secretary 
of Defense shall certify that they are not required for liquidation 
of obligations so incurred. Unobligated amounts of such alloca- 
tions equal to the value of orders placed with the military depart- 
ments against such allocations shall be reserved and shall remain 
available during the two succeeding fiscal years for making such 
reimbursements (except in case of funds obligated directly 
against such allocations) only upon the basis of materials deliv- 
ered and services rendered: Provided^'^ That no reimburse- 
ments for materials or services shall be made after June 30, 
1955, until the value of materials delivered and services per- 
formed shall equal the amount of expenditures made from all 
appropriations herein and heretofore made for military assist- 
ance as of said date : Provided,^ hoicever^ That not to exceed $302- 
000,000, of any reimbursement heretofore made hy the Air Force 
to military assistance appropriations as of June 30, 1955, pur- 
suant to the provisions of this section shall be considered null and 
void and materials and services of an equivalent amount shall 
be delivered or performed by the Air Force for military assist- 
ance purposes without reimbursement : Provided further^ That in 
the event the President shall determine that supplies and equip- 
ment ordered against funds so allocated are required for the de- 
fense of the United States, the amount allocated for supplies and 
materials required for such purpose shall be returned to the ap- 
propriation from which allocated : Provided further^ That funds 
appropriated under the authority of the Mutual Security Act of 
1954, as amended, for military assistance (including specified 
amounts of unobligated balances and funds consolidated with 
any such appropriation), amounts certified pursuant to section 
13il of the Supplemental Appropriation Act, 1955, and, where 



27 Public Law 93-608 (88 Stat. 1968), January 2, 1975 repealed the requirement which 
formerly read : "Provided, That reports of items to be delivered against funds reserved 
as provided herein sliall be furnished quarterly by the Secretary of Defense to the Com- 
mittees on Appropriations of the Senate and the Hoase of Representatives and, not less 
often than ouce each quarter, said Secretary shall make a detailed report to the Committees 
on Appropriations of the Senate and the House of Representatives, on a delivery or service- 
rendered basis, on all military assistance funds allocated and available to the Department 
of Defense as of the end of the preceding quarter :" 



203 



authorized by the President, funds made available to the Depart- 
ment of Defense under section 401 of the Mutual Security Act of 
1954, as amended, shall be maintained in one account which shall 
be used for all transactions involving military assistance during 
the current fiscal year and no expenditure shall be made from 
such account except as may be within the limits of the sum of the 
amounts mentioned in this proviso : Provided further^ That noth- 
ing in this Act shall be construed as making any appropriation or 
fund available for obligation after the end of the current fiscal 
year except as may be necessary for reimbursements authorized 
herein. 

^'Section 110 of the Act of September 3, 1954 (Public Law 778) , 
is hereby repealed." 

Section 110 of the Mutual SecuHty AppropHation Act, 1955, 
contained comparable provisions relating to accounting proce- 
dures for militaiini assistance funds. 



f. Supplemental Appropriation Act, 1955 



Partial text of Public Law 84-663 [H,R. 9936], 68 Stat. 800, 830; 31 U.S.C. 200^ 
approved August 26, 1954, as amended by Public Law 86-79 [General Govern- 
ment Matters Appropriation Act, 1960; H.R. 7176], 73 Stat. 167, approved July 
1959 

• * « • * ^ * 

Chapter XIII — General Provisionb 

* ♦ <c 4c * * 4> 

Sec. 1311. (a) After the date of enactment hereof no amount shall 
be recorded as an obligation of the Government of the United States 
unless it is supported by documentary evidence of — 

( 1 ) a binding agreement in writing between the parties thereto, 
including Government agencies, in a manner and form and for a 
purpose authorized by law, executed before the expiration of the 
period of availability for obligation of the appropriation or fund 
concerned for specific goods to be delivered, real propert}^ to be 
purchased or leased, or work or services to be performed : or 

(2) a valid loan agreement, showing the amount of the loan to 
be made and the terms of repaymient thereof ; or 

(3) an order required by law to be placed with a Government 
agency; or 

(4) an order issued pursuant to a law authorizing purchases 
without advertising when necessitated by public exigency or for 
perishable subsistence supplies or within specific monetary limi- 
tations ; or 

(5) a grant or subsidy payable (i) from appropriations made 
for payment of or contributions toward, sums required to be paid 
in specifix amounts fixed by law or in accord with form.ulae pre- 
scrilDed by law, or (ii) pursuant to ajrreement authorized by, or 
plans approved in accord with and authorized by, law; or 

(6) a liability which m.ay result from pending litigation 
broueht under authorit}^ of law; or 

(7) emplovment or services of persons or expenses of travel 
in accord with law, and services performed by public utilities: or 

(8) any other legal liability of the United States against an 
approprin^-ion or fund leirnlly available therefor. 

(b) ^ Hereafter, in connection with the submission of all requests 
for proposed appropriations to the Bureau of the Budget, the head of 



1 Sec. 210 of th** Genrral Government Matters Appropriation Act, 1960, amended this 
suTiseetion. -which formerly road : 

"(b) Not later than September RO of each year, the hend of each Federal ajrency shall 
renort, as to each appropriation or fnnd nndr-r the control of fsnoh apency. tho amount 
thereof remalninpr ohllsrated but xinexpendAd and the amount thereof remaining unobl'.c'ted 
on June .^0 of such year and copion of such report shall be forwarded by him to the chp'r- 
rnan of the Committees on Appropriations of the Senate and the House of Representat}- es, 
to the Comptroller Oenoral of th*^ United Stntes. and to th^ Director of the Bureau of the 
Budget : Provided, That such report for the fiscal year ending June 30, 19f54, shall ht made 
not later than- Doceml)or 81. 1954, and shall include only such obligations an couW have 
been recorded under the provisions of subsection (a) hereof." 



(204) 



205 



each Federal agency shall report that any statement of obligations 
furnished therewith consists of valid obligations as defined in subsec- 
tion (a) hereof. 

(c) Each report made pursuant to subsection (b) shall be supported 
by certihcations of the officials designated by the head of the agency, 
and such certifications shall be supported by records evidencing the 
amounts which are reported therein as having been obligated. Such 
certifications and records shall be retained in the agency in such form 
as to facilitate audit and reconciliation for such period as may be 
necessary for such purposes. The officials designated by the head of 
the agency to make certifications may not redelegate the responsibility. 

(d) No appropriation or fund which is limited for obligation pur- 
poses to a definite period of time shall be available for expenditure 
after the expiration of such period except for liquidation of amounts 
obligated in accord with subsection (a) hereof; but no such appro- 
priation or fund shall remain available for expenditure for any 
period beyond that otherwise authorized by law. 

(e) Any statement of obligation of funds furnished by any agency 
of the Government to the Congress or any committee thereof shall 
include only such amounts as may be valid obligations as defined in 
subsection (a) hereof. 



3. Other Foreign Assistance Related Legislation 

a. Latin American Development Act, as amended 

Public Law 86-735 [H.R. 13021], 74 Stat. 869, approved September 8, 1960, as 
amended by the Foreign Assistance Act of 1961, Public Law 87-195 [S. 1983], 
75 Stat. 424, approved September 4, 1981, and the Foreign Assistance Act of 
1963, Public Law 88-205 [H.R. 7885], 77 Stat. 379, approved December 16, 1963 

AN ACT To provide for assistance in the development of Latin America and in 
the reconstruction of Chile, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Latin American Development Act".^ 

STATEMENT OF POLICY 

Sec. 1.^ (a) It is the sense of the Congress that — 

(1) the historic, economic, political, and geographic relation- 
ships among the American Eepublics are unique and of special 
significance and, as appropriate, should be so recognized in future 
legislation ; 

(2) although governmental forms differ among the American 
Republics, the peoples of all the Americas are dedicated to the 
creation and maintenance of governments which will promote in- 
dividual freedom; 

(3) the interests of the American Eepublics are so interrelated 
that sound social and economic progress in each is of importance 
to all and that lack of it in any American Republic may have seri- 
ous repercussions in others ; 

(4) for the peoples of Latin America to continue to progress 
within the framework of our common heritage of democratic 
ideals, there is a compelling need for the achievement of social 
and economic advance adequate to meet the legitimate aspirations 
of the individual citizens of the countries of Latin America for 
a better way of life ; 

(5) there is a need for a plan of hemispheric development, open 
to all American Republics which cooperate in such plan, based 
upon a strong production effort, the expansion of foreign trade, 
the creation and maintenance of internal financial stability, the 
growth of free economic and social institutions, and the develop- 
ment of economic cooperation, including all possible steps to es- 
tablish and maintain equitable rates of exchange and to bring 
about the progressive elimination of trade barriers ; 

(6) mindful of the advantages which the United States has 
enjoyed through the existence of a large domestic market with no 

1 Sec. 401(a) of the FAAct of 1963 Inserted the words "That this Act may be cited as 

the 'Latin Auiorican Development Act'." 
3 22 U.S.C. § 1942. 

(206) 



207 



internal trade barriers, and believing that similar advantages can 
accrue to all countries, it is the hope of the people of the United 
States that all American Republics will jointly exert sustained 
common efforts which will speedily achieve that economic coopera- 
tion in the Western Hemisphere which is essential for lasting 
peace and prosperity ; and 

(7) accordingly, *it is declared to be the policy of the people of 
the United States to sustain and strengthen principles of individ- 
ual liberty, free institutions, private enterprise, and genuine in- 
dependence in the Western Hemisphere through cooperation with 
all American Republics which participate in a joint development 
program based upon self-help and m.utual efforts, 
(b) In order to carry forward the above policy, the Congress 
hereby — 

(1) urges the President through our constitutional processes 
to develop cooperative programs on a bilateral or multilateral 
basis which will set forth specific plans of action designed to foster 
economic progress and improvements in the welfare and level of 
living of all the peoples of the American Republics on the basis 
of joint aid, mutual effort, and common sacrifice ; 

(2) proposes the development of workable procedures to ex- 
pand hemispheric trade and to moderate extreme price fluctua- 
tions in commodities which are of exceptional importance in the 
economies of the xlmerican Republics, and encourages the develop- 
ment of regional economic cooperation among the American 
Republics ; 

(3) supports the development of a more accurate and sympa- 
thetic understanding among the peoples of the American Repub- 
lics through a greater interchange of persons, ideas, techniques, 
and educational, scientific, and cultural achievements; 

(4) supports the strengthening of free democratic trade unions 
to raise standards of living through improved management-labor 
relations ; 

(5) favors the progressive development of common standards 
with respect to the rights and the responsibilities of private invest- 
ment wliich flows across national boundaries within the Western 
Hemisphere ; 

(6) supports the consolidation of the public institutions and 
agencies of inter- American cooperation, insofar as feasible, within 
the structure of the Organization of American States and the 
strengthening^ of the personnel resources and authority of the 
Organization in order that it may play a role of increasing impor- 
tance in all aspects of hemispheric cooperation ; and 

(7) declares that it is prepared to give careful and sympathetic 
consideration to programs which the President may develop for 
the purpose of promoting these policies. 

AUTHORIZATION" 

Sec. 2.* In order to carry out the purposes of section 1 of this Act, 
there is hereby authorized to be appropriated to the President not to 



3 22 U.S.C. § 1943. 

65-998—76 15 



208 



exceed $680,000,000,* which shall remain available until expended, and 
which the President may use, subject to such further legislative provi- 
sions as may be enacted, in addition to other funds available for such 
purposes, on such terms and conditions as he may specify : Provided^ 
That none of the funds made available pursuant to this section shall be 
used to furnish assistance to any country in Latin America being sub- 
jected to economic or diplomiatic sanctions by the Organization of 
American States. The Secretary of State shall keep the Committee 
on Foreign Eelations o.f the Senate and the Committee on Foreign 
Affairs of the House currently informed about plans and programs 
for the utilization of such funds. 



SPECIAL AUTHORIZATION FOR CHILEAN PcECONSTRUCTION 



Sec. 3.^ There is hereby authorized to be appropriated to the Presi- 
dent not to exceed $100,000,000,^ which shall remain available until 
expended, for use, in addition to other funds available for such pur- 
poses, in the reconstruction and rehabilitation of Chile on such terms 
and conditions as the President may specify. 



GENERAL PROVISIONS ^ 



Sec. 4.^ (a) Funds appropriated under sections 2 and 3 of this Act 
may be used for assistance under this Act pursuant to such provisions 
applicable to the furnishing o.f such assistance contained in any suc- 
cessor Act to the Mutual Security Act of 1954, as amended, as the 
President determines to be necessary to carry out the purposes for 
w^hich such funds are appropriated. 

(b) Of the funds appropriated under section 2 of this Act not more 
than $800,000 shall be available only for assisting in transporting to 
and settling in Latin America selected immigrants from that portion 
of the Kyukyuan Archipelago under United States administration. 

*Sec 401(b) of the FAAct of 1963. substituted "$680,000 000" for "$500 000 000". 
Public Law 87-41. approved May 27, 1961, appropriated $500 million for the Inter- 
American Social and Economic Cooperation Program to remain available until expended. 

^ 22 use i 1944 

« Public 'Law 87-41 appropriated "$100,000,000, to remain available until expended.' 
T Section 4 and title "General Provisions" added by Sec. 706 of the FAAct of 1961. 
• 22 U.S.C. i 1945. 



b. Mutual Security Act of 1959, as amended 

Partial text of Public Law 86-108 [H.R. 7500], 73 Stat. 246; 22 U.S.C. 1896b, 

approved July 24, 1959 

AN ACT To amend further the Mutual Security Act of 1954, as amended, and for 

other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of A'inerica in Congress assembled ^ That this Act may 
be cited as the ''Mutual Security Act of 1959''. 



Note. — Except for Chaptei^s Y, VI, and Sections T02 and 703, 
the whole of the Mutual Security Act of 1959 consisted of amend- 
ments to the Mutual Security Act of 1954, as amended, and to 
other laws. 

Note. — Section 501 (b) , which related to international coopera- 
tion in health, was repealed by Sec. 602 of the Mutual Security 
Act of 1960. Section 642 of the Foreign Assistance Act of 1961 
repealed Sec. 501(a), Chapter VI, and Sections 702 and 703 of 
the Mutual Security Act of 1959, as amended. 



« * 4c « * * * 

Chapter V— International Cooperation in Health ; Colombo 
Plan Council for Technical Cooperation 

colombo plan council for technical cooperation 

Sec. 502. To enable the United States to maintain membership in the 
Colombo Plan Council for Technical Cooperation, there is hereby 
authorized to be appropriated from time to time to the Department 
of State such sums as may be necessary for the payment by the United 
States of its share of the expenses of the Colombo Plan Council for 
Technical Cooperation. 



(209) 



c. The Mutual Security Act of 1954, as amended 

Retained provisions of Public Law 83-665 [H.R. 9678], 68 Stat. 832, approved 
Augrust 26, 1954, as amended 

Sec. 402.^ Earmarking of Funds. — Of the funds authorized to be 
made available in the fiscal year 1961 pursuant to this Act (other than 
funds made available pursuant to title II), not less than $175,000,000 
shall be used to finance the export and sale for foreign currencies or 
the grant of surplus agricultural commodities or products thereof pro- 
duced in the United States, in addition to surplus agricultural com- 
modities or products transferred pursuant to the Agricultural Trade 
Development and Assistance Act of 1954, and in accordance with the 
standards as to pricing and the use of private trade channels expressed 
in section 101 of said Act. Foreign currency proceeds accruing from 
such sales shall be used for the purposes of this Act and with particu- 
lar emphasis on the purposes of section 104 of the Agricultural Trade 
Development and Assistance Act of 1954 which are m harmony with 
the purposes of this Act. Notwithstanding section 1415 of the Supple- 
mental Appropriation Act, 1953, or any other provision of law, the 
President may use or enter into agreements with friendly nations or 
organizations of nations to use for such purposes the foreign currencies 
which accrue to the United States under this section. Surplus food 
commodities or products thereof made available for transfer under 
this Act (or any other Act) as a grant or as a sale for foreign curren- 
cies may also be made available to the maximum extent practicable to 
eligible domestic recipients pursuant to section 416 of the Agricultural 
Act of 1949, as amended (7 U.S.C. 1431), or to needy persons within 
the United States pursuant to clause (2) of section 32 of the Act of 
August 24, 1935, as amended (7 U.S.C. 612c). Section 416 of the 
Agricultural Act of 1949, as amended (7 U.S.C. 1431), is amended by 
inserting "whether in private stocks or" after "commodities" the first 
time that word appears. 

* « 4t :tt 4: 

Sec. 408.2 North Atlantic Treaty Organization. — (a) In order to 
provide for United States participation in the North Atlantic Treaty 
Organization, there is hereby authorized to be appropriated such 
amounts as may be necessary from time to time for the payment by 
the United States of its share of the expenses of the Organization and 
all necessary salaries and expenses of the United States permanent 
representative to the Organization, of such persons as may be ap- 
pointed to represent the United States in the subsidiary bodies of the 

122 U.S.C. § 1922. As amended by sec. 204(c) of Public Law 86-472 (74 Stat. 1?,6), 
which substituted "1961" for "1960". Previous amendments by sec. 205(c) of Public Law 
86-108 (73 Stat. 250), sec. 205(b) of Public Law 85-477 (72 Stat. 266), sec. 8(c) of Public 
Law 85-141 (71 Stat. 361), sec. 8(b) of Public Law 84-726 (70 Stat. 558), and sec. 8(b) 
of Public Law 84-138 (09 Stat. 286), changed the amount authorized and/or the fiscal year. 

'22 U.S.C. § 1928. Sec. 8(h) of Public Law 85-141 (71 Stat. 361), eliminjited provisions 
authorizing appropriations of not more than $3,200,000 for the fiscal year 1955. 

(210) 



211 



Organization or in any multilateral organization Tvhich participates 
in achieving the aims of the Xorth Atlantic Treaty, and of their ap- 
propriate staffs, and the expenses of participation in meetings of such 
organizations, including salaries, expenses, and allowances of per- 
sonnel and dependents as authorized by the Foreign Service Act of 
1946, as amended (22 U.S.C. 801), and allowances and expenses as 
provided in section 6 of the Act of July 30, 194C (22 U.S.C. 2STr). 

(b) The United States permanent representative to the North At- 
lantic Treaty Organization shall be appointed by the President by and 
with the advice and consent of the Senate and shall hold office at the 
pleasure of the President. Such representative shall have the rank 
and status of ambassador extraordinary and plenipotentiary and shall 
be a chief of mission, class 1, within the meaning of the Foreign Serv- 
ice Act of 1946, as amended (22 U.S.C. 801) . 

(c) ^ Persons detailed to the international staff of the Xorth Atlantic 
Treaty Organization in accordance with section 529 of this Act who 
are appointed as Foreign Service Reserve Officers may serve for pe- 
riods of more than five years notwithstanding the limitation in section 
522 of the Foreign Service Act of 1946, as amended (22 U.S.C. 922). 

******* 

Sec. 414.'* Munitions Control. — (a) The President is authorized 
to control, in furtherance of world peace and the security and foreign 
policy of the United States, the export and import of arms, ammuni- 
tion, and implements of war. including technical data relating thereto, 
other than by a United States Government agenc3\ The President 
is authorized to designate those articles which shall be considered as 
arms, ammunition, and implements of war, including technical data 
relating thereto, for the purposes of this section. 

(b) As prescribed in regulations issued under this section, every 
person who engages in the business of manufacturing, exporting, or 
importing any arm.s, ammunition, or implements of war, including 
technical data relating thereto, designated by the President under 
subsection (a) shall register with the United States Government 
agency charged Avith the administration of this section, and, in addi- 
tion, shall pay a registration fee which shall be prescribed by such 
regulations. Such regulations shall prohibit the return to the United 
States for sale in the United States (other than for the Armed Forces 
of the United States and its allies or for any State or local law en- 
forcement agency ^) of any military firearms or am.munition of United 
States manufacture furnished to foreign governments by the United 
States under this Act or any other foreign assistance program of the 
United States, whether or not advanced in value or improved in condi- 
tion in a foreign country. This prohibition shall not extend to similar 
firearms that have been so substantially transformed as to become, in 
effect, articles of foreign manufacture. 

(c) Any person who willfully violates any provision of this section 
or any rule or regulation issued under this section, or who willfully, 
in a registration or license application, makes any untrue statement 

»Sec. 205(h) of Public Law 86-108 (73 Stat. 250), substituted "fire vears" for "four 
years'' In part (c). 
* 22 U.S.C. 1934. 

5 The words "or for any State or local law enforcement agencv" were added by Sec. 403 
of the FAAct of 1967. 



212 



of a material fact or omits to state a material fact required to be stated 
therein or necessary to make the statements therein not misleading, 
shall upon conviction be fined not more than $25,000 or imprisoned not 
more than two years, or both. 

(d) ^ This section applies to and within the Canal Zone. 

(e) ^ Licenses issued for the export of articles on the United States 
Munitions List in excess of $100,000 shall be reported promptly to the 
Committee on Foreii^i Relations of the Senate and the Committee on 
Foreign Affairs of the House of Representatives, which report shall 
contain — 

( 1 ) the items to be exported under the license ; 

( 2 ) the quantity of each such item to be furnished ; 

(3) the name and address of the consignee and of the ultimate 
user of each such item ; and 

(4) an injunction whenever appropriate, concerning the neces- 
sity to protect the confidentiality of the information provided. 

(f) ^ Decisions on issuing licenses for the export of articles on the 
TTnited States munitions list shall be made in coordination with the 
T)ii-octor of the United States Arms Control and Disarmament Agency 
and shall take into account the Director's opinion as to whether the 
export of an article will contribute to an arms race, or increase the 
possibility of outbreak or escalation of conflict, or prejudice the 
development of bilateral or multilateral arms control arrangements. 

4e ♦ 4: 4c * « « 

Sec. 417.^ Irish Counterpart. — Pursuant to section 115(b)(6) of 
the Economic Cooperation Act of 1948, as amended, the disposition 
within Ireland of the unencumbered balance, in the amount of ap- 
proximately 6,000,000 Irish pounds, of the special account of Irish 
funds established under article IV of the Economic Cooperation 
Agreement between the United States of America and Ireland dated 
June 28, 1948, for the purposes of — 

(1) scholarship exchange between the United States and 
Ireland; 

(2) other programs and projects (including the establishment 
of an Agricultural Institute) to improve and develop the agri- 
cultural production and marketing potential of Ireland and to 
increase the production and efficiency of Irish industry ; and 

(3) development programs and i^rojects in aid of the foregoing 
objectives, is hereby approved, as provided in the agreement be- 
tween the Government of the United States of America and the 
Government of Ireland, dated June 17, 1954. 

'¥ * * ♦ * « • ]|e 

Sec. 502.^^ Use of Foreign Currency. — (a) N'otwithstanding sec- 
tion 1415 of the Supplemental Appropriation Act, 1953, or any other 
provision of law, proceeds of sales made under Section 550 of the 
Mutual Security Act of 1951, as amended, shall remain available and 



•Subsection (d) was added by Sec. 5 of Public Law 87-845, 76A Stat. 698-699 (1962). 
■7 Subsection (e) was added by Sec. 27 of the FAAct of 1973. 

"Subsection (f) was added by Sec. 150(a) of Public Law 94-141, Foreign Relations 
Anthorizntinn Act. Fiscal Year 197G. 
»22 U.S.C. '§ 1937. 
10 22 U.S.C. § 1754. 



213 



shall be used for any purposes of this Act, giving particular regard to 
the following purposes — 

(1) for providing military assistance to nations or mutual de- 
fense organizations eligible to receive assistance under this Act ; 

(2) for purchase of goods or services in friendly nations; 

(3) for loans, under applicable provisions of this Act, to in- 
crease production of goods or services, including strategic 
materials, needed in any nation with which an agreement was 
negotiated, or in other friendly nations, with the authority to use 
currencies received in repayment for the purposes stated in this 
section or for deposit to the general account of the Treasurv of the 
United States ; 

(4) for developing new markets on a mutually beneficial basis; 

(5) for grants-in-aid to increase production for domestic needs 
in friendly countries; and 

(6) for purchasing materials for United States stockpiles. 

^ (b) Notwithstanding section 1415 o.f the Supplemental Appropria- 
tion Act, 1953, or any other provision of law, local currencies owned 
by the United States, Avliich are in excess of the amounts reserved un- 
der section 612(a) of the Foreign Assistance Act of 1961, as amended, 
and of the requirements of tlie United States Government in payment 
of its obligations outside the United States, as such requirements may 
be determined from tim.e to time by the President (and any other local 
currencies owned by the TTnited States in amounts not to exceed the 
equivalent of $75 per day per person exclusive of the actual cost of 
transportation)^- shall be made available to ^lembers and employees 
of ^"^ a]:)propriate committees of the Congress engaged in carrying out 
their duties under section 136 of the Legislative Iveorganization Act 
of 1946, as amended, and to tlie Joint Committee on Atomic Energy 
and the Joint Economic Committee and the Select Committees on 
Small Business of the Senate and House of Representatives for their 
local currency expenses. Each member or employee of any such com- 
mittee shall make, to the chairman of such committee in accordance 
with regulations prescribed by such committee, an itemized repoit 
showing the amounts and dollar equivalent values of each such foreign 
currency expended and the amounts of dollar expenditures made from 
appropriated funds in connection with travel outside the United 
States, together with the purposes of the expenditure, including lodg- 
ing, meals, transportation, and other purposes. Within the first sixty 
days that Congress is in session in each calendar year, the chairman 
of such committee shall prepare a consolidated report showing the 
total itemized expenditures during the preceding calendar year of 
the committee and each subcommittee thereof, and of each member or 
employee of such committee or subcommittee, and shall forward such 
consolidated report to the Clerk of the House of Representatives (if 

11 ($7o) WOP substituted for ($.')0) bv Sec. 5i(l) of Department of State Appropriations 
Authorization Act, 1973 (Public Law 93-126 ; 87 Stat. 451). 

12 The words to this point, beginning with ", which are in excess of the amounts'' v/ere 
added by Sec. 402 of the FA Act of 10fi4. 

^•"•The words ":Meinbers and emplo.vees of" were inserted bv Sec. 5(2) of Department of 
State Appropriations Authorization Act, 1973 (Public Law 93-126; 87 Stat. 451). 



214 



the committee be a committee of the House of Representatives or a 
joint committee whose funds are disbursed by the Clerk of the House) 
or to the Secretary of the Senate (if the committee be a Senate com- 
mittee or joint committee whose funds are disbursed by the Secretary 
of the Senate).^* 

******* 
Sec. 514.^^ International Educational Exchange Activities — 
Foreign currencies or credits owed to or owned by the United States, 
where arising from this Act or otherwise, shall, upon a request from 
the Secretary of State certifying that such funds are required for the 
purpose of international educational exchange activities under pro- 
grams authorized by section 32(b) (2) of the Surplus Property Act 
of 1944, as amended, be reserved by the Secretary of the Treasury for 
sale to the Department of State for such acti^dties on the basis of the 
dollar value at the time of the reservation. 

******* 

Sec. 523. Coordination With Foreign Policy.— (a) * * * 

(b) * * * 

(c) * * * 

((-1 ) iG ^yiienever the President determines that the prevention of im- 
proper currency transactions ^' in a given country requires it, he may 
direct the chief of the United States diplomatic mission there to issue 
regulations applicable to members of the Armed Forces and officers 
and employees of the United States Government, and to contractors 
with the United States Government and their employees, governing 
the extent to which their pa^^ and allowances received and to be used 
in that country shall be paid in local currency. Notwithstanding any 
other law, United States Government agencies are authorized and 
directed to comply with such regulations. 

Sec. 536.^^ Joint Commission on Rural Reconstruction in 
China. — The President is authorized to continue to participate in the 
Joint Commisson on Rural Reconstruction in China and to appoint 
citizens of the United States to the Commission. 



1* The words to this point, beginning with "Each member or employee of any such 
committoe * *", were substituted by Sec. 107 of the "Legislative Branch Appropriation 
Act, 1975" (Public Law 93-371, 88 Stat. 424) in lieu of the following : 

"Within the first ninety calendar days that Congress is in session in each calendar 
year, the Department of State shall submit to the chairman of each such committee a 
report showing the amounts and dollar equivalent values of each such foreign currency 
expended during the preceding calendar year by each Member and employee with respect 
to travel outside the United States. Such reports of that committee shall be available for 
public inspection in the offices of such committee." 

^"22 U.S.C. § 1766. 

^6 22 U.S.C. § 1783(d). 

1" Section 707 of the FAAct of 1961 substituted the words "prevention of improper cur- 
rency transactions" in lieu of "achievement of United States foreign policy objectives". 
1*22 U.S.C. § 1796. 



d. Mutual Defense Assistance Control Act of 1951, as amended 

(Battle Act) 

Mutual Defense Assistance Control Act of 1951, Public Law 82-213 [H.R. 4550], 
65 Stat. 644, approved October 26, 1951, as amended by Public Law 87-195 
[S. 1983], 75 Stat. 424, 463, approved September 4, 1961 

AN ACT To provide for the control by the United States and cooperating? foreign 
nations of exports to any nation or combination of nations threatening the 
security of the United States, including the Union of Soviet Socialist Republics 
and all countries under its domination, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress asseiiibled^ Tliat this Act may 
be cited as the "Mutual Defense Assistance Control Act of 1951." ^ 

TITLE I— WAR MATERIALS 

Sec. 101.- The Congress of the United States, recognizing that in 
a world threatened by aggression the United States can best preserve 
and maintain peace by developing maximum national strength and 
by utilizing ail of its resources in cooperation vrith other free nations, 
liereby declares it to be the policy of the United States to apply an 
embargo on the shipment of arms, ammunition, and implements of 
war, atom.ic energy materials, petroleum, transportation materials of 
strategic value, and items of primary strategic significance used in the 
production of arms, ammunition, and implements of war to any nation 
or combination of nations threatening the security of the United 
States, including the Union of Soviet Socialist Republics and all 
countries under its domination, in order to (1) increase the national 
strength of the United States and of the cooperating nations; (2) 
impede the ability of nations threatening the securiy of the United 
States to conduct military operations; and (3) to assist the people 
of the nations under the domination of foreign aggressors to re- 
establish their freedom. 

It is furtlier declared to be the policy of the United States that no 
military, economic, or financial assistance shall be supplied to any 
nation unless it applies an embargo on such shipments to any nation 
or combination of nations threatening the security of the United 
States, including the Union of Soviet Socialist Republics and all coun- 
tries under its domination. 

This Act shall be administered in such a way as to bring about the 
fullest support for any resolution of the General Assembly of the 
United Nations, supported by the United States, to prevent the ship- 
ment of certain commodities to areas under the control of govern- 
ments engaged in hostilities in defiance of the United Nations. 



1 22 U.S.r. 1011 note. 

2 22 U.S.C, IGll. 

(215) 



216 



Sec. 102.^ Responsibility for giving effect to the purposes of this 
Act shall be vested in the person occupying the senior position authoi-- 
ized by subsection (e) of section 406 of the Mutual Defense Assistance 
Act of 1949, as amended, or in any person who may hereafter be 
charged with principal responsibility for the administration of the 
provisions of the Mutual Defense Assistance Act of 1949. Such person 
is hereinafter referred to as the "Administrator.*' 

Sec. 103.^ (a) The Administrator is hereby authorized and directed 
to determine within thirty days after enactment of this Act after 
full and complete consideration of the views of the Departments 
of State, Defense, and Commerce ; the Economic Cooperation Admin- 
istration; and any other appropriate agencies, and notwithstanding 
the provisions of any other law, w^hich items are, for the purpose of this 
Act, arms, ammunition, and implements of war, atomic energy ma- 
terials, petroleum, transportation materials of strategic value, and 
those items of primary strategic significance used in the production 
of arms, ammunition, and implements of war which should be 
embargoed to effectuate the purposes of this Act : Provided^ That such 
determinations shall be continuously adjusted to current conditions 
on the basis of investigation and consultation, and that all nations 
receiving United States military, economic, or financial assistance 
shall be kept informed of such determinations. 

(b) All military, economic, or financial assistance to any nation 
shall, upon the recommendation of the Administrator, be terminated 
forthwith if such nation after sixty days from the date of a determi- 
nation under section 103(a) knowingly permits the shipment to any 
nation or combination of nations threatening the security of the United 
States, including the Union of Soviet Socialist Republics and all coun- 
tries under its domination, of any item which he has determined under 
section 103(a) after a full and complete investigation to be included 
in any of the following categories: Arms, ammunition, and imple- 
ments of war, atomic energy materials, petroleum, transportation 
materials of strategic value, and items of primary strategic signifi- 
cance used in the production of arms, ammunition, and implements of 
war : Provided^ That the President after receiving the advice of the 
Administrator and after taking into account the contribution of such 
country to the mutual security of the free world, the importance of 
such assistance to the security of the United States, the strategic 
importance of imports received from countries of the Soviet bloc, 
and the adequacy of such country's controls over the export to the 
Soviet bloc of items of strategic importance, may direct the continu- 
ance of such assistance to a country which permits shipments of items 
other than arms, ammunition, implements of war, and atomic energy 
materials when unusual circumstances indicate that the cessation of 
aid would clearly be detrimental to the security of tlie United States : 
Provided further. That the President shall immediately report any 
determination made pursuant to the first proviso of this section with 
reasons therefor to the Appropriations and Armed Services Comniit- 
tees of the Senate and of the House of Representatives, the Committee 
on Foreign Relations of the Senate, and the Committee on Foreign 
Affairs of the House of Representatives, and the President shall at 



3 22 U.S.C. 1011a. 
< 22 U.S.C. IGllb. 



217 



least once each quarter review all determinations made previously 
and shall report his conclusions to the foregoing committees of the 
House and Senate, which reports shall contain an analysis of the 
trade with the Soviet bloc of countries for which determinations have 
been made. 

Sec. 104.^ Whenever military, economic, or financial assistance has 
been terminated as provided in this Act, such assistance can be resumed 
only upon determination by the President that adequate measures 
have been taken by the nation concerned to assure full compliance with 
the provisions of this Act. 

Sec. 105.^ For the purposes of this Act the term "assistance" does 
not include activities carried on for the purpose of facilitating the 
procurement of materials in which the United States is deficient. 

TITLE II— OTHER MATERIALS 

Sec. 201.^ The Congress of the United States further declares it to 
be the policy of the United States to regulate the export of commod- 
ities other than those specified in title I of this Act to any nation or 
combination of nations threatening the securit}^ of the United States, 
including the Union of Soviet Socialist Republics and all countries 
under its domination, in order to strengthen the United States and 
other cooperating nations of the free world and to oppose and offset by 
nonmilitary action acts which threaten the security of the United 
States and the peace of the world. 

Sec. 202.® The United States shall negotiate with any country re- 
ceiving military, economic, or financial assistance arrangements for 
the recipient country to undertake a program for controlling exports 
of items not subject to embargo under title I of this Act, but which 
in the judgment of the Administrator should be controlled to any 
nation or combination of nations threatening the security of the United 
States, including the Union of Soviet Socialist Republics and all 
countries under its domination. 

Sec. 203.^ All military, economic, and financial assistance shall be 
terminated when the President determines that the recipient country 
(1) is not effectively cooperating with the United States pursuant to 
this title, or (2) is failing to furnish to the United States information 
sufficient for the President to determine that the recipient country is 
effectively cooperating with the United States. 

TITLE III— GENERAL PROVISIONS 

Sec. 301.^° All other nations (those not receiving United States 
military, economic, or financial assistance) shall be invited by the 
President to cooperate jointly in a group or groups or on an individual 
basis in controlling the export of the commodities referred to in title 
I and title II of this Act to any nation or combination of nations 
threatening the security of the United States, including the^ Union 
of Soviet Socialist Republics and all countries under its domination. 

6 22 U.S.C. 1611c. 
•22 U.S.C. IGlld. 

7 22 U.S.C. 1612. 

8 22 U.S.C. l(512a. 
^22 U.S.C. 1612b. 
10 22 U.S.C. 1613. 



218 



Sec, 302.^^ The Administrator with regard to all titles of this Act 
shall — 

(a) coordinate those activities of the various United States 
departments and agencies wliich are concerned with security con- 
trols over exports from other countries ; 

(b) make a continuing study of the administration of export 
control measures undertaken by foreign governments in accord- 
ance with the provisions of this Act, and shall report to the Con- 
gress from time to time but not less than once every six months 
recommending action where appropriate ; and 

(c) make available technical advice and assistance on export 
control procedures to any nation desiring such cooperation. 

Sec. 303.^2 The provisions of subsection (a) of section 403, of section 
404, and of subsections (c) and (d) of section 406 of the Mutual 
Defense Assistance Act of 1949 (Public Law 329, 81st Congress) as 
amended, insofar as they are consistent with this Act, shall be appli- 
cable to this Act. Funds made available for the Mutual Defense Assist- 
ance Act of 1949, as amended, shall be available for carrying out this 
Act in such amounts as the President shall direct. 

Sec. 304.^^ In every recipient country where local currency is made 
available for local currency expenses of the United States in con- 
nection with assistance furnished by the United States, the local cur- 
rency administrative and operating expenses incurred in the adminis- 
tration of this Act shall be charged to such local currency funds to the 
extent available. 

Sec. 305.^* There is hereby authorized to be appropriated to the 
Secretary of State such sums as may be necessary from time to time 
to administer and carry out the objectives of this Act.^^ 



" 22 U.S.C. 1613a. 
" 22 U.S.C. 1613b. 
" 22 U.S.C. 1613c. 

"22 U.S.C. 1613d. Sec. 703(a) of the FAAct of 1961 substituted new language for 
Sec. 305. It formerly read as follows: "Subsection (d) of section 117 of the Foreign Assist- 
ance Act of 1948 (Public Law 472, 80th Congress), as amended, and subsection (a) of sec- 
tion 1302 of the Third Supplemental Appropriation Act, 1951 (Public Law 45, 82d Con- 
gress), are repealed." 

"FA Appropriation Act, 1975: $4,800,000 for expenses authorized by section 637(b) 
of the Foreign Assistance Act of 1961, as amended, and by section 305 of the Mutual 
Defense Assistance Control Act of 1951. as amended. 



e. Use of Foreign Currencies ^ 

(1) Supplemental Appropriation Act, 1953 (Section 1415) 

Partial text of Public Law 82-547 [H.R. 8370], 66 Stat. 637, 662; 31 U.S.C. 724, 

approved July 15, 1952 

****** * 

Chapter XIV — General Pro^^sioxs 
******* 

Sec. 1415. Foreign credits owed to or owned by the United States 
Treasury will not be available for expenditure by agencies of the. 
United States after June 30, 1953, except as may be provided for 
annually in appropriation Acts and provisions for the utilization of 
such credits for purposes authorized by law are hereby authorized to 
be included in general appropriation Acts. 

******* 



Xo'iT..— Executive Order Xo. 10488 of September 23, 1953, 18 
F.R. 5699, authorizes the Secretary of the Treasury to issue reg- 
ulations governing the purchase, custody, transfer or sale of for- 
eign exchange by agencies of the United States. See also sec. 519 
of the Department of Defense Appropriation Act, 1969, Public 
Law 90-580, 82 Stat. 1120, 1133. 



1 See page 167 of text for Use of Local Currencies provision of the FAAct of 1973. 

(219) 



(2) General Government Matters Appropriation Act, 1962 



Partial text of Public Law 87-125 [H.R. 7577] 75 Stat. 268, 283, approved 

August 3, 1961 

4i nn m * * * 

TITLE V— GENEEAL PROYISIOKS 
******* 

Sec. 508. Pursuant to section 1415 of the Act of July 15, 1952 (66 
Stat. 662)/ foreign credits (including currencies) owed to or owned 
by the United States may be used by Federal agencies for any purpose 
for which appropriations are made for the current fiscal year (includ- 
ing the carrying out of Acts requiring or authorizing the use of such 
credits),^ only when reimbursement therefor is made to the Treasury 
from applicable appropriations of the agency concerned: Provided^ 
That such credits received as exchange allowances or proceeds o.f sales 
of personal property may be used in whole or part payment for acqui- 
sition of similar items, to the extent and in the manner authorized by 
law, without reimbursement to the Treasury : Provided further, That 
nothing in section 1415 of the Act of July 15, 1952, or in this section 
shall be construed to prevent the making of new or the carrying out of 
existing contracts, agreements, or executive agreements for periods 
in excess of one year, in any case where such contracts, agreements, or 
executive agreements for periods in excess of one year were permitted 
prior to the enactment of this Act under section 32(b) (2) of the Sur- 
plus Property Act of 1944, as amended (50 U.S.C. App. 1641 (b) (2) ) , 
and the performance of all such contracts, agreements, or executive 
agreements shall be subject to the availability of appropriations for 
the purchase of credits as provided by law. 

#♦♦**** 



2 The words "and for liquidation of obligations legally incurred against such credits 
prior to July 1, 1953" appeared at this point in previous General Government Matters 
Appropriation Acts, 1956-1959. and the Supplemental Appropriations Act, 1955. 

(220) 



(3) Use of Reserved Foreign Currencies ^ 



Public Law 89-677 [S. 801], 80 Stat. 955; 31 U.S.C. 938, approved October 15, 1966 

AX ACT To improve the balance-of -payments position of the United States by 
I>ermitting the use of reserved foreign currencies in lieu of dollars for current 
expenditures. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress asserabJed^ That: 

Any foreign currencies held by the United States vrhich have been 
or may be reserved or set aside for specified programs or activities of 
any agency of the Government may be used by Federal agencies for 
any authorized purpose, except (1) that reimbursement shall be made 
to the Treasury from applicable appropriations of the agency con- 
cerned, and (2) that any foreign currencies so used shall be replaced 
when needed for the purpose for which originally reserved or set aside. 



1 See page 167 of test for Use of Foreign Currencies provision of the FAAct of 1973. 

(221) 



f. Amendment to Merchant Marine Act of 1936, as amended 



Public Law 83-664 [S. 3233], 68 Stat. 832, approved August 26, 1954, as amended 
by Public Law 87-266 [H.R. 6732], 75 Stat. 565, approved September 21, 1961, 
and Public Law 91-469 [Merchant Marine Act of 1970; H.R. 15424], 84 Stat. 
1018, 1034, approved October 21, 1970 

AN ACT To amend the Merchant Marine Act, 1936. to provide permanent legis- 
lation for the transportation of a substantial portion of waterborne cargoes 
in United States-flag vessels. 

Be it enacted hy the Semite and House of Representatives of the 
United States of America in Congress assembled^ That section 901 of 
the Merchant Marine Act, 1936, as amended,^ is hereby amended by 
inserting "(a)" after "Sec. 901." and by adding at the end of the 
section the following new subsection : 

"(b) (1)- whenever the United States shall procure, contract for, or 
otherwise obtain for its own account, or shall furnish to or for the 
account of any foreign nation without provision for reimbursement, 
any equipment, materials, or commodities, within or without the 
United States, or shall advance funds or credits or guarantee the con- 
vertibility of foreign currencies in connection with the furnishing of 
such equipment, materials, or commodities, the appropriate agency or 
agencies shall talxe such steps as may be necessary and practicable to 
assure that at least 50 per centum of the gross tonnage of such equip- 
ment, materials, or connnodities (computed separately for dry bulk 
carriers, dry cargo liners, and tankers), which may be transported on 
ocean vessels shall be transported on privately owned United States- 
flag commercial vessels, to the extent such vessels are available at fair 
and reasonable rates for United States-flag commercial vessels, in such 
manner as will insure a fair and reasonable participation of United 
States-flag commercial vessels in such cargoes by geographic areas: 
Provided^ That the provisions of this subsection may be waived when- 
ever the Congress by concurrent resolution or otherwise, or the Presi- 
dent of the United States or the Secretary of Defense declares that 
an emergency exists justifying a temporary waiver of the provisions 
of section 901(b) (1)^ and so notifies the appropriate agency or agen- 
cies : And provided further^ That the provisions of this subsection shall 
not apply to cargoes carried in the vessels of the Panama Canal Com- 
pany. Nothing herein shall repeal or otherwise modify the provisions 
of Public Eesolution Numbered 17, Seventy-third Congress (48 Stat. 
500)* as amended." ^ For purposes of this section, the term "privately 
owned United States-flag commerical vessels" shall not be deemed to 
include any vessel which, subsequent to the date of enactment of this 

1 46 U.S.C. § 1241. 

2 Sec. 27(a) of Public Law 91-469 [Merchant Marine Act of 1970] redesignated 
subsection (b) as subsection (b)(1). 

3 Sec. 27(b), of Public Law 91-4G9 substituted "section 901(b)(1)" In lieu of "section 
901 (b)". 

* 15 U.S.C. § 616a. 

^ See second NOTE on page 308 and Sec. 603 of the FAAct, page 85. 

(222) 



223 



amendment, shall have been either (a) built outside the United States, 
(b) rebuilt outside the United States, or (c) documented under any 
foreign registry, until such vessel shall have been documented under 
the laws of the United States for a period of three years: Pravided^ 
Jwwever^ That the provisions of this amendment shall not apply where, 
(1) prior to the enactment of this amendment, the owner of a vessel, 
or contractor for the purchase of a vessel, originally constructed in 
the United States and rebuilt abroad or contracted to be rebuilt 
abroad, has notified the Maritime Administration in writing of its in- 
tent to document such vessel under United States registry, and such 
vessel is so documented on its first arrival at a United States port not 
later than one year subsequent to the date of the enactment of this 
amendment, or (2) where prior to the enactment of this amendm.ent, 
the owner of a vessel under United States registry has made a contract 
for the rebuilding abroad of such vessel and has notified the Maritime 
Administration of such contract, and such rebuilding is completed and 
such vessel is thereafter documented under United States registry on 
its first arrival at a United States port not later than one year subse- 
quent to the date of the enactment of this amendment.^ 

(2)7 Every department or agency having responsibility under this 
subsection shall administer its programs with respect to this subsec- 
tion under regulations issued by the Secretary of Commerce. The Sec- 
retary of Commerce shall review such administration and shall annu- 
ally report to the Congress with respect thereto. 



« The last part of this subsection, beginning with the words "For purposes of this section," 
wa? added by Public Law 87-2G6. 

■^Subsection (2) was added by Sec. 27(c) of Public Law 91—469. 



65-998—76 16 



g. The Sugar Act of 1948, as amended 

Partial text of Public Law 80-338 [H.R. 4075], 61 Stat. 933, approved August 8, 
1947, as amended by Public Law 87-535 [H.R. 12154], 76 Stat. 156, 166, approved 
July 13, 1982; Public Law 89-331 [H.R. 11135], 79 Stat. 1271, approved Novem- 
ber 8, 1965; and by Public Law 92-138 [H.R. 8866], 85 Stat. 379, 389, approved 
October 14, 1971 

V * * * * * * 

Sec. 408.1 * * * 

(c) In any case in wliicli a nation or a political subdivision thereof 
has, on or after January 1, 1961, (1) nationalized, expropriated, or 
otherwise seized the ownership or control of the property or business 
enterprise owned or controlled by United States citizens or any corpo- 
ration, partnership, or association not less than 50 per centum benefi- 
cially owned by United States citizens, or (2) imposed upon or 
enforced against such property or business enterprise so owned or con- 
trolled, discriminatory taxes or other exactions, or restrictive mainte- 
nance or operational conditions (including limiting or reducing par- 
ticipation in production, export, or sale of sugar to the United States 
under quota allocation pursuant to this Act) not imposed or enforced 
with respect to the property or business enterprise of a like nature 
owned or operated b}' its own nationals or the nationals of any govern- 
ment other than the Government of the United States, or (3) imposed 
upon or enforced against such propert}^ or business enterprise so owned 
or controlled, discriminatory taxes or other exactions, or restrictive 
maintenance or operational conditions (including limiting or reducing 
participation in production, export, or sale of sugar to the United 
States under quota allocation pursuant to this Act) , or has taken other 
actions, which have the effect of nationalizing, expropriating or other- 
wise seizing ownership or control of such property or business enter- 
prise, or (4) violated the provisions of any bilateral or multilateral 
international agreement to which the United States is a party, designed 
to protect such property or business enterprise so owned or controlled, 
and has failed within six months following the taking of action in any 
of the above categories to take appropriate and adequate steps to rem- 
edy such situation and to discharge its obligations under international 
law toward such citizen or entity, including the prompt payment to the 
owner or owners of such property or business enterprise so national- 
ized, expropriated or otherwise seized or to provide relief from such 
taxes, exactions, conditions or breaches of such international agree- 
ments, as the case may be, or to arrange, with the agreement of the 
parties concerned, for submitting the question in dispute to arbitration 
or conciliation in accordance with procedures under which final and 
binding decision or settlement will be reached and full payment or 
arrangements with the owners for such payment made within twelve 
months following such submission, the President may withhold or 

17 U.S.C. § 1158. 



(224) 



225 



suspend all or any part of the quota under this Act of such nation, 
and either in addition or as an alternative, the President may, under 
such terms and conditions as he may prescribe, cause to be levied and 
collected at the port of entry an impost on any or all sugar sought to 
be imported into the United States from such nation in an amount not 
to exceed $20 per ton, such moneys to be covered into the Treasury of 
the United States into a special trust fund, and he shall use such fund 
to make payment of claims arising on or after January 1, 1961, as a 
result of such nationalization, expropriation, or other type seizure or 
action set forth herein, except that if such nation participates in the 
quota for the West Indies, the President may suspend a portion of 
the quota for the West Indies which is not in excess of the quantity 
imported from that nation during the preceding year, until he is satis- 
fied that appropriate steps are being taken, and either in addition or 
as an alternative he may cause to be levied and collected an impost in 
an amount not to exceed $20 per ton on any or all sugar sought to be 
imported into the United States from such nation for the payment of 
claims as provided herein. Any quantity so withheld or suspended shall 
be allocated under section 202(d) (1) (B) of this Act. AVith respect to 
any action taken during 1961 in any of the categories set forth in this 
subsection, the provisions of this subsection relating to levying and 
collecting an impost shall apply only if the President so determines. 



h. Fishermen's Protective Act of 1967, as amended 



Note. — Section 5 of the Fishermen's Protective Act of 1967, 
as amended, concerns the withholding of foreign assistance funds 
from foreign countries because of seizure of a United States ves- 
sel. For text of the Act, see page 1538. 



i. Emergency Security Assistance Act of 1973 



Public Law 93-199 [H.R. 11088], 87 Stat. 836, approved December 26, 1973 

AN ACT To provide emergency assistance authorizations for Israel and 

Cambodia. 

Be H enacted hy the Senate arid Home of Representatives of the 
United States of AmeriGa in Congress assembled^ That this Act may 
be cited as the "Emergency Security Assistance Act of 1973". 

Sec. 2.^ In addition to such amounts as may be otherwise authorized 
to be appropriated to the President for security assistance for the 
fiscal year 1974, there are hereby authorized to be appropriated to the 
President not to exceed $2,200,000,000 for emergency military assist- 
ance or foreign military sales credits, or for both as the President 
may determine, for Israel, of which sum am.ounts in excess of 
SI, 500,000,000 may be used pursuant to this section or section 4 of 
this Act only if the President (1) determines it to be important to our 
national interest that Israel receive assistance hereunder exceeding 
$1,500,000,000, and (2) reports to Congress each such determination 
(if more than one) at least twenty days prior to date on which 
funds are obligated or expended under this Act in excess of such 
$1,500,000,000 limitation. The twenty-day requirement contained in 
the preceding sentence shall not apply if hostilities are renewed in the 
Middle East. The President shall include in his report the amount of 
funds to be used pursuant to the determination, the terms of the addi- 
tional assistance under section 2 or section 4, and the justification for 
the determination. All information contained in the justification sliall 
be public information excej)t to the extent that the President concludes 
that publication would be incompatible with the security interests of 
the United States. 

Sec. 3. Military assistance furnished out of funds appropriated 
under section 2 of this Act shall be furnished in accordance with all of 
the provisions applicable to military assistance under the Foreign 
Assistance Act of 1961 (75 Stat. 424; Public Law 87-195) , as amended. 
Foreign military sales credits extended to Israel out of such funds 
shall be provided on such terms and conditions as the President may 
determine and without regard to the provisions of the Foreign Mili- 
tary Sales Act (82 Stat. 1320; Public Law 90-629), as amended. 

1 FA Appropriation Act, 1974 : "$2,200,000,000 : Provided, That the funds appropriated 
In this paragraph shall be available only upon enactment into law of authorizing legisla- 
tion : Provided further. That any part of any funds appropriated in this paragraph used to 
furnish inilitary assistance shall be accounted for in accordance with section 108 of the 
Mutual Security Appropriation Act, 1956 (69 Stat. 438), as amended: Provided further. 
That of the funds appropriated under this paragraph, not more than $1,500,000,000 may be 
available for grant military assistance : Provided further, That none of the funds appro- 
priated in this paragraph in excess of $1,700,000,000 shall be obligated unless the President 
determines such obligations will be in the national interest and provides Congress with 
detailed justifications and notification ten days prior to any such obligation of funds." 

The FA Appropriation Act, 1974 requires 10 days notification prior to any such obliga- 
tion of funds., 

(226) 



Sec. 4. At any time prior to June 30, 197-i, the President is hereby 
authorized, within the limits of funds appropriated under section 2 
of this Act for Israel, to release Israel from its contractual liability 
to i^ay for defense articles and defense services purchased or financed 
under the said Foreign Military Sales Act or under this Act during 
the period beginning October 6, 1973, and ending June 30, 197-1, and 
such funds shall be used to reimburse current applicable appropria- 
tions, funds, and accounts of the Department of Defense for the value 
of such defense articles and defense services. 

Sec. 5. The Secretary of Defense shall conduct a study of the 1973 
xVrab-Israeli conflict to ascertain the effectiveness of the foreign mili- 
tary assistance program as it relates to the Middle East conflict, 
including weapons that the United States is providing to Israel 
through foreign assistance programs, and to compare them to the 
effectiveness of the weapons wliich the Soviet Union is providing to 
the Arab States. In conducting such study and submitting such report, 
the Secretary shall take care not to disclose, directly or indirectly, 
intelligence sources or methods or confidential information received 
from any other nation. A report of the conclusions of such study 
shall be submitted to the Congress as soon as practical and in any case 
not later than December 31, 1974. 

Sec. 6. Of the funds appropriated pursuant to section 2, the Presi- 
dent may use such sums as may be necessary from time to time for 
payment by the United States of its share of the expenses of the United 
Nations Emergency Force in the ]\Iiddle East, as apportioned by the 
United Nations in accordance with article 17 of the United Nations 
Charter. 



Note: On March 1, 1974, the President signed the following Memorandum (39 
F.R. 10417, March 20, 1974) : 

DELEGATION OP FUNCTIONS AND ALLOCATION OF FUNDS RELATED TO 
EMERGENCY SECURITY ASSISTANCE FOR ISRAEL 

Memorandum for the Secretary of State, the Secretary of Defense 

The White House, 
Washington, March 1, 197^. 
You are hereby designated and empowered to exercise the following functions 
vested in the President by Public Law 98-199, the Emergency Security Assistance 
Act of 1973, without the approval, ratification, or other action of the President. 
Functions not expressly delegated herein are reserved to the President. 

1. Functions delegated to the Secretary of State : 

(a) the function of reporting to the Congress any determination made by 
the President under Section 2 of the Act ; 

(b) the function conferred in Section 6 of the Act. 

2. Functions delegated to the Secretary of Defense : 

the function of providing military assistance or foreign military sales 
credits as determined by the President. 
Pursuant to the authority contained in Public Law 93-240, the Foreign Assistance 
and Related Programs Appropriation Act, 1974, I hereby allocate from the appropri- 
ation for "Emergency Security Assistance for Israel" to the Secretary of Defense, 
.$2,200,000,000.00, This allocation is subject to the limitations imposed by the pro- 
visos in the provision appropriating these funds and subject to apportionment of the 
necessary funds by the Office of Management and Budget. I direct the Secretary of 
Defense to allocate to the Secretary of State such sums from the $2,200,000,000.00 
as may be necessary from time to time for payment by the United States of its share 
of the expenses of the United Nations Emergency Force in the Middle East, as 
apportioned by the United Nations in accordance with article 17 of the United 
Nations Charter as authon'^p'i in Section 6 of Public Law 93-199, the Emergency 
Security Assistance Act of 1973. 

This memorandum shall be published in the Federal Register. 



j. Foreign Disaster Assistance Act of 1974 

Partial text ' of Public Law 93-333 [H.R. 12412], 88 Stat. 290, approved 

July 8, 1974 

* * 4c ♦ » « ♦ 

Sec. 4.2 The Secretary of State shall keep the appropriate commit- 
tees of Congress fully and currently informed of the ongoing status of 
any negotiations with any foreign government regarding the cancel- 
lation, renegotiation, rescheduling, or settlement of any debt owed to 
the United States by any such foreign government under the Foreign 
Assistance Act of 1961. The Secretary of State shall transmit to the 
Speaker of the House of Kepresentatives, and to the chairman of the 
appropriate Senate committee, the text of any international agree- 
ment proposing a modification in the terms of such debt no less than 
thirty days prior to its entry into force, together with a detailed 
explanation of the interest of the United States in such modification. 



1 Note : Sections 2 and 3 were amendments to the Foreign Assistance Act. See new 

Section 494 and Section 4y4A. as amended (piJ. 70 and 71 ). 

2 22 use 2395 note. 



(228) 



k. Amendments to Board for International Broadcasting Act of 

1973 



Partial Text of Public Law 94-104 [S. 2230], 89 Stat. 508, Approved October 6, 

1975 

AN ACT To authorize appropriations for the Board for International Broadcast- 
ing for fiscal year 1970; and to promote improved relations between the United 
States, Greece, and Tnrke.v, to assist in the solution of the refugee problem on 
Cyprus, and to otherwise strengthen the North Atlantic Alliance 

* * * * « * * 

Sec. 2. (a) (1) Tiie Coii<rrcss roaffiniis the policy of the United States 
to seek to improve and harmonize rehitions amon<i: the allies of the 
United States and hetween the United States and its allies, in the inter- 
est of nuitual defense and national security. In particular, the Con- 
gress recognizes the special contribution to the North Atlantic Alliance 
of Greece and Turkey by virtue of their geographic position on the 
southeastern flank of Europe and is prepared to assist in the moderni- 
zation and strengtliening of their respective armed forces. 

(2) The Congress further reaffirms the policy of the United States 
to alleviate the suffering of refugees and other victims of armed con- 
flict aiid to foster and promote international efforts to ameliorate the 
conditions which prevent such persons from resuming normal and pro- 
ductive lives. The Congress, therefore, calls upon the President to en- 
courage and to cooperate in the implementation of nmltilateral pro- 
granis, under the auspices of tlie Secretaiy General of the United 
Xations, the United Nations High Commissioner for Eef ugees, or other 
appropriate international agencies, for the relief of and assistance to 
refugees and other persons disadvantaged by the hostilities on Cyprus 
pending a final settlement of the Cyprus refugee situation in the spirit 
of Security Council Resolution 361. 

(b) (1) In order that the purposes of this Act may be carried out 
without awaiting the enactment of foreign assistance legislation for 
fiscal year 19TG programs — 

(A) the President is authorized, notwithstanding section 620 
of the Foreign Assistance Act of 1961, to furnish to the Govern- 
ment of Turke}^ those defense articles and defense services with 
respect to which contracts of sale were signed under section 21 
of section 22 of the Foreign Military Sales Act on or before Feb- 
ruary 5, 1975, and to issue licenses for the transportation to the 
Government of Turkey of arms, annnunition, and implements of 
war (including technical data relating thereto) : Provided^ That 
such autluDrization shall be elective only while Turke}^ shall 
observe the cease-fire and shall neither increase its forces on 
Cyprus nor transfer to Cyprus any United States supplied imple- 
ments of war: Provided further^ That the authorities contained 

(229) 



230 



in tlus section shall not become effective unless and until the 
President determines and certifies to the Congress that the furnish- 
ing of defense articles and defense services, and the issuance of 
licenses for the transportation of implements of war, arms and 
ammunition under this section are important to the national secu- 
rity interests of the United States ; and 

(B) the President is requested to initiate discussions with the 
Government of Greece to determine the most urgent needs of 
Greece for economic and military assistance. 

(C) the President is requested to initiate discussions Avith the 
Government of Turkey concerning effective means of preventing 
the diversion of opium poppy into illicit channels. 

(2) The President is directed to submit to the Speaker of the House 
of Representatives and to the Foreign Eelations and Appropriations 
Committee of the Senate within sixty days after the enactment of this 
Act a report on discussions conducted under subsections (b) (1) (B) 
and (C), together with his recommendations for economic and mili- 
tary assistance to Greece for the fiscal year 1976. 

(c)(1) Section 620(x) of the Foreign Assistance Act of 1961 is 
amended by striking out all after the word Provided,^- and inserting 
in lieu thereof the following: "That the President is authorized to 
suspend the provisions of this section and of section 3(c) of the Foreign 
Military Sales Act only with respect to sales, credits, and guaranties 
under the Foreign Military Sales Act, as amended, for the procure- 
ment of such defense articles and defense services as the President 
determines and certifies to the Congress are necessary in order to 
enable Turkey to fulfill her defense responsibilities as a member of 
the North Atlantic Treaty Organization. Any such suspension shall 
be effective only while Turkey shall observe the cease-fire and shall 
neither increase its forces on Cyprus nor transfer to Cyprus any United 
States supplied arms, ammunition, and implements of Avar.''. 

(2) Section 620 (x) of the Foreign Assistance Act of 1961 is further 
amended by designating the present subsection as paragraph (1) and 
by adding at the end thereof the following new paragraph : 

"(2) The President shall submit to the Congress within sixty days 
after the enactment of this paragraph, and at the end of each succeed- 
ing sixty-day period, a report on progress made during such period 
toward the conclusion of a negotiated solution of the Cyprus conflict.". 

(3) Nothing in this section shall be construed as authorizing (A) 
military assistance to Turkey under chapter 2 of part II of the Foreign 
Assistance Act of 1961, or (B) sales, credits, or guaranties to or on 
behalf of Turkey under the Foreign Military Sales Act for the pro- 
curement of defense articles or defense services not determined by the 
President to be needed for the fulfillment of Turkey's North Atlantic 
Treaty Organization responsibilities. 

(4) Pursuant to the provisions of this section, in the case of any 
letter of offer to sell any defense article or defense service pursuant to 
the Foreign Military Sales Act for $25,000,000 or more, the President 
shall submit to the Speaker of the House of Representatives and to the 
chairman of the Committee on Foreign Relations of the Senate a 
statement containing (A) a brief description of the defens*^. article or 



231 



defense service to be offered, (B) the dollar amount of the proposed 
sale, (C) the United States Armed Force which is making the sale, and 
(D) the dat€ on which any letter of offer to sell is to be issued. The 
letter of offer shall not be issued if the Congress, within twenty calen- 
dar days after receiving any such statement, adopts a concurrent resolu- 
tion stating in effect that it objects to such proposed sale. 

(5) This subsection shall become effective only upon enactment of 
foreign assistance legislation authorizing sales, credits, and guaran- 
ties under the Foreign Military Sales xVct for fiscal year 1976.^ 

1 At the time this volume went to print, foreign assistance legislation authorizing sales, 
credits, and guaranties under the Foreign Military Sales Act for fiscal year 1976 had not 
been enacted. 



4. Executive Orders and Delegations of Authority Relating to 

Foreign Assistance 

a. Executive Order 10973, as amended 

Executive Order 10973, November 3, 1961, 26 F.R. 10469, 3 CFR, 1959-63 Comp,, 
p. 493, as amended by Executive Order 11261, December 11, 1965, 30 F.R. 
15397, 3 CFR, 1965 Supp., p. 194; Executive Order 11417, July 26, 1968, 33 F.R. 
10625, 3 CFR, 1966-70 Comp., p. 736; Executive Order 11432, October 24, 1968, 
33 F.R. 15701, 3 CFR 1966-70 Comp. p. 751; Executive Order 11685, Septem- 
ber 27, 1972, 37 F.R. 20155; and Executive Order 11841, February 28, 1975, 
40 F.R. 8933. 

Admixistratioi^ of Foretgn Assistance and Eelated Functions 

Bv virtue of the authority vested in me by the Foreign Assistance 
Act of 1961 (75 Stat. 424) and section 301 of title 3 of the United States 
Code, and as President of the United States, it is hereby ordered as 
follows : 

Part I. Department of State 

Sec. 101. Delegation of Functions. Exclusive of the functions 
otherwise delegated, or reserved to the President, by the provisions of 
this order, and subject to the provisions of this order, there are hereby 
delegated to the Secretary of State (hereafter in this Part referred to 
as the Secretary) all functions conferred upon the President by (1) 
the Act (as defined in Part VI hereof), (2) the Act to provide for 
assistance in the development of Latin America and in the reconstruc- 
tion of Chile, and for other purposes ^ (74 Stat. 869; 22 U.S.C. 1942 
et seq.), (3) the IMutual Defense Assistance Control Act of 1951 ^ 
(65 Stat. 644; 22 U.S.C. 1611 et seq.), (4) the unrepealed provisions 
of the Mutual Securitv Act of 1954 ^ (68 Stat. 832; 22 U.S.C. 1750 
et seq.) , (5) * section 8 (d) of the Act of January 12, 1971 (P.L. 91-672 ; 
84 Stat. 2055), and (6) those provisions of acts appropriating funds 
under the authority of the Act which relate to the Act. 

Sec. 102. Agency for International Development, (a) The Secre- 
tary shall establish an agency in the Department of State to be known 
as the Agency for International Development (hereafter in this Part 
referred to as the Agency). 

(b) ^ The Agency shall be headed by an Administrator who shall be 
appointed pursuant to section 624 ( a ) of the Act. 

(c) ^ The officers provided for in section 624(a) of the Act shall also 
serve in the Agency. 

1 For toxt. soe pajro 200. 
- For toy.i, soc jiayo 21;". 

2 For toxt. ; pajr«' 210. 

* Parnj^raph 1 of P^xecutive Order 1168') redesignated clause (5) as clause (6), and added 
a new clause (5). 

^Subsections (b) and (c), which were amended by para. 2 of Executive Order 11685, 
formerly read as follows : 

"(b) The Ajjoncy shall be headed by an Administrator w^ho shall bo the ofMCor provided 
for in section G24(a)(l) of the Act. Nothinji: in this order shall be construed as affecting: 
the tenure of the said Administrator now in office. 

"(c) The officers provided for in sections 624(a)(2) and G24(a)(3) of the Act shall 
serve in the Agency." 

(232) 



233 



Srx\ 103. [Revoked— 1972].^ Continuation of Prior Agencies.— 

Sec. 104. Special IMissions and Staffs Abroad. The maintenance of 
special missions or staffs abroad, the fixing of the ranks of the chiefs 
thereof after the chiefs of the United States diplomatic missions, and 
tlie authorization of the same compensation and allowances as the chief 
of mission, class 3 and class 4, within the meaning of the Foreign Serv- 
ice Act of 1946 ' (60 Stat. 999 ; 22 U.S.C. 801 et seq.) , all under section 
631 of the Act, shall be subject to the approval of the Secretary. 

Sec. 105. Munitions Control. In carrying out the functions con- 
ferred upon the President by section 414 of the IMutual Security x\ct 
of 1954,^ the Secretary shall consult with appropriate agencies. Desig- 
nations, including clianges in designations, by the Secretary of articles 
wliich sliall be considered as arms, ammunition, and im.plements of 
war, including technical data relating thereto, under that section shall 
have the concurrence of the Secretary of Defense. 

Sec. 106. Office of Small Business. The Office of Small Business 
provided for in section 602(b) of the Act shall be in the Department 
of State. 

Part 11. Department of Defense 

Sec. 201. Delegation of Functions. Subject to the provisions of 
this order, there are hereby delegated to the Secretary of Defense: 

(a) The functions conferred upon the President by Part II (except 
chapter 4 thereof)^ of the Act not otherwise delegated or reserv^ed to 
the President. 

(b) To the extent that they relate to other functions under the Act 
administered bv the Department of Defense, the functions conferred 
upon the President by sections 602(a), 605 (a), 625 (u), 625(h), 627, 
628, 631(a), 634(b), 635(b), and 635(d) of the Act. 

(c) The function conferred upon the President by section 644 (i) of 
the Act. 

(d) The functions conferred upon the President by the fourth and 
fifth provisos of section 108 of the Mutual Securitv Appropriation Act, 
1956 (69 Stat. 438). 

Sec. 202. Eeports and Information. In carrying out the functions 
under section 634(b) of the Act delegated to him by the provisions 
of section 201(b) of this order, the Secretary of Defense shall consult 
with the Secretary of State. 

Sec. 203. Exclusions From Delegation to Secretary of Defense. 
The following-described functions conferred upon the President by 
the Act are excluded from the functions delegated by the provisions 
of section 201 (a) of this order : 

(a) Those under section 505 (a) (introductory clause) of the Act. 

(b) Those under sections 505 (b)^^ (1), (2), and (3) of the Act to 
the extent that they pertain to countries which agree to the conditions 
set forth therein. 



•Para. 3 of Executive Order 11685 revoked section 108, which read as follows: "The 
corporate Development Loan Fund, the International Cooperation Administration, and the 
Office of the Insppctor General and Comptroller shall continue in existence until the end 
of November 8, 1961. The personnpl, offices, entities, propertv, records, and funds of such 
agencies and office may be utilized by the Secretary prior to abolition of such agencies 
and oftice." 

" For text, see pajre 428. 

^ For text, see pajre 211. 

"The words "(except chapter 4 thereof)" were added by para. 4 of Executive Order 
11685. 

I'jPara. 5(a) of Executive Order 116S5 substituted "505(a>" in lieu of "506(a)". 
"Para. 5(b) of Executive Order 11685 substituted "505(b)" in lieu of "506(b)". 



234 



(c) " [Revoked— 1972]. 

(d) i2 [Revoked— 1972]. 

(e) Those of negotiating, concluding, and terminating international 
agreements. 

( f ) Those under section 514 of the Act." 

Part III. Other Agencies 

Sec. 301.^* Department of thb Treasury. There are hereby dele- 
gated to the Secretary of the Treasury : 

(a) The functions conferred upon the President by subsections (a) 

(2) and (b) of section 514 of the Act, by the second sentence of sec- 
tion 612(a) of the Act, and by subsections (f) and (g) of sec. 634 of 
the Act.^^ 

(b) So much of the functions conferred upon the President by 
Section 414 of the Mutual Security Act of 1954, as amended, as relate 
to control of the import of arms, ammunition and implements of war, 
including technical data relating thereto. In carrying out such func- 
tions the Secretary of the Treasury shall consult with appropriate 
agencies, and on matters affecting world peace, the external security 
and foreign policy of the United States he shall be guided by the views 
of the Secretary of State. Designations, including changes in designa- 
tions, of articles subject to import control under Section 414 shall have 
the concurrence of the Secretary of State and the Secretary of Defense. 

(c) ^** In carrying out the functions under section 514 of the Act 
delegated to him by this order, the Secretary of the Treasury sliall 
consult with the Secretai-y of State. 

Sec. 302. Department of Commerce. There is hereby delegated to 
the Secretary of Commerce so much of the functions conferred upon 
the President by section 601(b) (1) of the Act as consists of drawin*?" 
the attention of private enterprise to opportunities for investment and 
development in less developed friendly countries and areas. 

Sec. 303. Civil Service Commission. There is hereby delegated to 
the Chairman of the Civil Service Commission the function of pre- 
scribing regulations conferred upon the President by the proviso con- 
tained in section 625 (b) of the Act. 

Sec. 304. United States Information Agenct.^^ (a) The United 
States Information Agency shall perform all public information func- 
tions abroad with respect to the foreign assistance, aid, and develop- 
ment programs of the United States Government. 



" Snbppctions (c) and (d), 'which were revoked by para, 5(c) of Executive Order 11085, 
read as follow? : 

"(c) So mnrh of those under sp'*tion 511 (b) of the Art as conpists of determininir that 
internal «:ernrity rennirenients mav be the basis for proer-^.ms of military assistance in tlie 
form of defen-jp servinos and renortinsr any such determination. 

"(d) That of makinjj the determination provided for in section 507(a) of the Act." 

" Rnbsef'tion (f) vras adfied bv para. RCd) of Eve-ntivp Orrier llfiSR. 

P«f>. 301 was amended by Fxecntlve Order 114.'',2. 38 F.R. 15701. Oct. ?4. 1968. 

^5 Para. (Ua) of Executive Order 11685 amenrVd subsection (a), -which formerlv read a* 
follov^'s : "(a) The funrtion f'onferT'ii npo" the Pr-ocirip^f the sf'COnrl sentenf*e of Sert'on 
612 «f the Act." Executive Order ii,816. ."^O tt'.R. rt^OO.'^, October 25. 1974 added the words : 
"and by R'.ibspctions (f) and Ce^ of Sec. 6.?4 of the Art." 

1" Siibsertion (o) was adrled bv para. 6(b> of Erpcntive O'-rler "'1685. 

"Execntive Order 11261 amended section 304 by submitting this lanjruape. Section 
304 formerly read as follows: "The T'nitod State'; information Aeencv shall perform nil 
public-Information fnnrt'ons abroor? with resneet to the foreign assistance, aid, and 
development program.s of the United States Government." 



235 



(b) There are hereby delegated to the Director of the United States 
Information Agency the functions conferred upon the President by 
sections 221 and 222''of the Act to the extent that those functions relate 
to informational media guaranties authorized by section 1011 of the 
United States Information and Educational Exchange Act of 1948 
(68 Stat. 862) , as amended.^^ 

Sec. 305. DE\Ti:LOPMEXT Loan Comimittee. There is hereby estab- 
lished a Development Loan Committee in accordance with section 204 
of the Act. The Committee shall consist of the Administrator of the 
Agency for International Development, who shall be chairman, the 
Chairman of the Board of Directors of the Export-Import Bank of 
Washington, the Assistant Secretary of State for Economic Affairs, 
the Assistant Secretary of the Treasury dealing with international 
finance, the Assistant Secretary of Comjnerce for Domestic and Inter- 
national Business,'^ and the officer of the Agency for International 
Development dealing with development financing. 

Sec. 306.2° De\t:lopmext Coordixatiox Committee, (a) In accord- 
ance with section 640B of the act, there is hereby established a 
Development Coordination Committee (hereinafter referred to as the 
Committee). The Committee shall consist of the Administrator of 
tlio Agency for International Development, who shall be Chairman; 
the Under Secretary of State for Economic Affairs ; the Under Sec- 
retary of the Treasury for Monetary Affairs; the Under Secretary 
of Commerce ; the Under Secretary of Agriculture ; the Under Secre- 
tary of Labor; the Special Eepresentative for Trade Xegctiations ; 
an Associate Director of the Office of Management and Budget ; the 
Executive Director of the Council on International Economic Policy ; 
a representative of the Assistant to the President for national affairs : 
the President of the Export-Import Bank of the United States ; and 
the President of the Overseas Private Investment Corporation. 

( b) Whenever matters within the jurisdiction of the Committee may 
be of interest to Federal agencies not represented on the Committee 
under paragraph (a) of this section, the Chairman of the Committee 
may consult with such agencies and may invite them to designate repre- 
sentatives to participate in meetings and deliberations of the 
Committee. 

(c) Under the foreign policy guidance of the Secretary of State, the 
Committee shall advise the President with respect to coordination of 
United States policies and programs affecting the development of the 
developing countries, including programs of bilateral and multilateral 
development assistance. 

(d) All agencies and officers of the Government shall keep the Com- 
mittee informed in necessary detail as to the policies, programs, and 
activities referred to in paragraph (c) of this Section. 

(e) Nothing herein shall be deemed to derogate from the responsi- 
bilities of the Secretary of State, the Secretary of the Treasury, or 
from responsibilities vested elsewhere by law or other Executive 
orders. 



^5 For text see page 2641. 

19 The worflR "the Assistant Secretary of Commerce for Domestic and International Busi- 
ness." were added bv Executive Order 11417, 33 F.R. 1062n. July 26, 1968. 

20 Sec. 306 was added Executive Order No. 11841, February 26, 1975. 



236 



Part IV. Keserved Functions 

Sec. 401. Reservation of Functions to the President. There are 
liereby excluded from the functions delegated by the foregoing provi- 
sions of this order : 

(a) The functions conferred upon the President by sections 50-i(b), 
613(a), 614(a), 620(a), 620(d), 621(a), 622(b), 622(c), 633(a), and 
633 (b)-^ of the Act. 

(b) The functions conferred upon the President by the Act and 
section 408(b) of the Mutual Security Act of 1954 - with respect to 
the appointment of officers required to be appointed by and with the 
advice and consent of the Senate and with respect to the appointment 
of officers pursuant to section 624(c) of the Act and the function so 
conferred by section 204 of the Act of assigxiing officers to the Devel- 
opment Loan Committee. 

(c) The functions conferred upon the President with respect to de- 
terminations, certifications, directives, or transfers of funds, as the 
case may be, by sections 202(b), 205, 303, 481, 505(b)(4), 506(a), 
604(a), 610, 614(c), 624(d) (7), 632(b), and 634(c) of the Act.-^^ 

(d) The following-described functions conferred upon the Presi- 
dent: 

(1) Those under section 503 with respect to findings. 

(2) Those under sections 505(b) (1), (2), and (3)^* in respect 
of ccanti'ies which do not agree to the conditions set forth therein. 

(3) (Revoked 1072).-^ 

(4) That under section 614(b) with respect to determining any 
provisions of law to be disregarded to achieve the purpose of that 
section. 

(5) ^^ That under the second sentence of section 654(c) with 
respect to the publication in the Federal Register of any finding 
or determination reserved to the President : Provided, that any 
officer to whom there is delegated the function of making any 
finding or determination within the purview of section 654(a) is 
also authorized to reach the conclusion specified in the second 
sentence of section 654(c) in performance of the function dele- 
gated to him. 

(e) Those Avith respect to determinations imder sections 103(b) 
(first Proviso), 104 and 203 of the Mutual Defense Assistance Control 
Act of 1951.2^ 

( f ) That under section 523 (d) of the Mutual Security Act of 1954.^8 



Para. 7(a) of Executive Order 11685 deleted and 634(a)" and inserted "and" after 
"633(a),". 

" For text, see pajre 210. 

23 Para. 7(b) of Executive Order 11685 inserted tlie language to this point, besinnine 
with "202(b)". in lieu of "202(b), 205, 303, 506(b)(4), 510(a), 604(a), 610, 614(c), 
624(e) (7). 632(b), 634(o), and 643(d) of the Act." 

2^Para. 7(c) of Executive Order 11685 substituted "505(b) (1), (2), and (3)" in lieu 
of "506(b) (1), (2), and (3)". 

^Subsection (d)(3) was revoked by para. 7(d) of Executive Order 11685. It read as 
follow-! : "(3) Those under section 511(b), except the functions of determining that internal 
security recinirements may be the basis for programs of military assistance in the form of 
defense services anrl reporting anv such determination." 

Subsection (d) (5) was added by para. 7(e) of Executive Order 11685. 

27 For text, see page 217. 

28 For text, see page 214. 



237 



(g)29 Those under section 502 of the Foreign Assistance and Re- 
lated Programs Appropriation Act, 1972 (86 Stat. 55), viith respect to 
certification. 

Part V. Funds 

Sec. 501. Allocation of Fuxds. Funds appropriated or otherwise 
made available to the President for carrying out the Act shall be 
deemed to be allocated Tvithout any further action of the President, 
as foUovrs : 

(a) There are allocated to the Secretary of State all funds made 
available for carrying out the Act except those made available for 
carryina' out Part II of the Act. 

(b) There are allocated to the Secretary of Defense funds made 
available for carrying out Part II of the Act. 

Sec. 502. Reallocatiox of Fuxds. The Secretary of State and the 
Secretary of Defense may allocate or transfer as appropriate any 
funds received under subsections (a) and (b), respectively, of section 
501 of this order, to any agency, or part thereof, for obligation or 
expenditure thereby consistent with applicable law. 

Paet VI. Gexeral Pro\t:sioxs 

Sec. 601. Definitioxs. (a) As used in this order, the words "the 
Act" mean the Foreign Assistance Act of 1961, as amended,^° exclu- 
sive of Part IV thereof. 

(b) As used in this order, the word "function'- or "functions'' in- 
cludes any duty, obligation, power, authority, responsibility, right, 
privilege, discretion, or activity. 

Sec. 602. Ixcidextal Transfers, (a) Effective at the end of No- 
vember 3, 1961, all offices, entities, property, and records of the corpo- 
rate Development Ix)an Fund, not otherAvise disposed of by the Act 
arc hereby transferred to the Department of State. 

(b) So*^ much of the records of the Export-Import Bank of Wash- 
ington as the Director of the Bureau of the Budget shall determine to 
be necessary for the purposes of section 621(e) of the Act shall be 
transferred to the Department of State. 

Sec. 603. Persoxxel. (a) In carrying out the functions conferred 
upon the President by the provisions of section 625(d) (1) of the Act, 
and by this order delegated to the Secretary of State, the Secretary 
shall authorize such of the agencies which administer programs under 
the Act as he may deem appropriate to perform any of the functions 
under section 625(d) (1) of the xVct to the extent that the said func- 
tions relate to the programs administered by the respective agencies. 

(b) Persons appointed, employed, or assigned after May 19, 1959, 
under section 527(c) of the Mutual Security Act of 1954 or section 
625(d) of the Act for the purpose of performing functions under such 

29 Subsection (g) was amended by para. 7(f) of Executive Order 116S5. It formerly read 
as follows : "(g Those under section 107 of the Foreign Assistance and Related Agencies 
Appropriation Act, 1962 (75 Stat 717), and those Avith respect to determination and 
certification under sections 109 and 602, respectiveiv of that Acr " 

30 Para. 8 of Executive Order 11685 added the words ", amended." 



23S 



Acts out-side the United States shall not, unless otherwise agreed by 
the agency in which such benefits may be exercised, be entitled to the 
benefits provided by section 528 of the Foreign Service Act of 1946 
in cases in which their service under the appointment, employment, 
or assi2:nment exceeds thirty months. 

Sec.^604. Keferexces to Orders and Acts. Except as may for any 
reason be inappropriate : 

(a) Eeferences in this order or in any other Executive order to (1) 
the Foreign Assistance Act of 1961 (including references herein to 
"the Act'-), (2) unrepealed provisions of the Mutual Security Act of 
1954,2- (3) any other act which relates to the subject of this order, or 
(4) any provisions of any thereof shall be deemed to include refer- 
ences thereto, respectively, as amended from time to time. 

(b) References in any prior Executive order to the Mutual Security 
Act of 1954 or any provisions thereof shall be deemed to^be references 
to the Act or the corresponding provision, if any, thereof. 

(c) Eeferences in this order to provisions of any appropriation Act, 
and references in any other Executive order to provisions of any ap- 
propriation Act related to the subject of this order, shall be deemed 
to include references to any hereafter-enacted provisions of law which 
are the same or substantially the same as such appropriation Act pro- 
visions, respectively. 

(d) References in this order or in any other Executive order to this 
order or to any provision thereof shall be deemed to include references 
thereto, respectively, as amended from time to time. 

(e) References in any prior Executive order not superseded by this 
order to any provisions of any Executive order so superseded shall 
hereafter be deemed to be references to the corresponding provisions, 
if any, of this order, 

(iy^ In conformity with section 202(b) of the Act of February 7, 
1972 (Public Law 92-226; 86 Stat. 27), references in this order to 
Part I of the Act shall be deemed to include also chapter 4 of Part II 
of the Act, and references in this order to Part II of the Act shall be 
deemed to exclude chapter 4 of Part II of the Act. 

Sec. 605. Superseded Orders. The following are hereby superseded : 

(a) Executive Order No. 10893 of November 8, 1960 (25 F.R. 10731) , 
except Part II thereof and except for the purposes of using funds 
pursuant to section 643(c) of the Act.^* 

(b) Section 2 of Executive Order Xo. 10915 of Januarv 24, 1961 
(26 F.R. 781). 



31 For text, ?;ee pajie 443. 

32 For text, see page 210. 

33 Subsection (f) was added by para. 9 of Executive Order 11685. 
31 Part II of Executive Order 10893 reads as follows ; 

•'Part II. COORDINATION AND SUPERVISION OF FUNCTIONS ABROAD 

"Section 201. Functions of Chiefs of United States Diplomatic Missiom. The several 
Chiefs of the United States Diplomatic Missions in foreign countries, aa the representa- 
tives of the President and acting on his behalf, shall have and exercise, to the extent 
permitted by law and in a'^^ordance with such instructions as the President may from 
time to time promulgate, affirmative responsibility for the coordination and supervision 
over the carrying out by agencies of their functions in the respective countries." 

Execn+ivp Order No. 10915 was amended bv Executive Order No. 10973 of November 
3, 1961 (26 F.R. 10469, 3 CFR, 1959-1963 comp.. p. 232). 



239 

(c) Executive Order No. 10955 of July 31, 1961 (26 F.E. 6967). 

Sec. 606. Saving Provisions. Except to the extent that they may be 
inconsistent with this order, all determinations, authorizations, regu- 
lations, rulings, certificates, orders, directives, contracts, agreements, 
and other actions made, issued, or entered into with respect to any 
function affected hy this order and not revoked, superseded, or other- 
wise made inapplicable before the date of this order, shall continue 
in full force and effect imtil amended, modified, or terminated by 
appropriate authority. 

Sec. 607. Effective Date. The provisions of this order shall become 
effective as of September 30, 1961. 

John F. Kennedy. 

The White House, Noverriber 5, 1961, 



65-998—76 17 



b. State Department Delegation of Authority No. 104, 

as amended 

State Department Delegation of Authority No. 104, November 3, 1961 [28 F.R. 
10608], as amended by Delegation of Authority 104-1, April 10, 1962 [27 F.R. 
3701], Delegation of Authority 104-A, September 26, 1962 [27 F.R. 9925], 
Delegation of Authority 104-2, December 18, 1962 [28 F.R. 530], Delega- 
tion of Authority 104-3, July 1, 1963 [28 F.R. 7231], Delegation of Authority 
104-4, March 4, 1964 [29 F.R. 3443], Delegation of Authority 104-5, June 3, 1965 
[30 F.R. 11110], Delegation of Authority 104-6, January 2, 1968 [33 F.R. 541], 
Delegation of Authority 104-7, February 5, 1970 [35 F.R. 3243], Delegation of 
Authority 104-8, October 2, 1972 [37 F.R. 21449-October 11, 1972], Delegation of 
Authority 104-9, November 16, 1973 [38 F.R. 34130-December 11, 1973], and 
Delegation of Authority 104-10, January 29, 1974 [39 F.R. 4676-February 4, 
19743 

Foreign Assistance Act of 1961 and Certain Eei^vted Acts 

delegation of authority 

By virtue of the autliority vested in me by tlie Foreign Assistance 
Act of 1961 (75 Stat. 424) (hereinafter referred to as the Act), the 
Executive Order of ^^'ovember 3, 1961, entitled "Administration of 
Foreign Assistance and Related Functions" (hereinafter referred to 
as the Executive Order), the Foreign Military Sales Act (82 Stat. 
1320), the Executive Order of December 22, 1969, entitled, "Adminis- 
tration of Foreign Military Sales'',^ Executive Order No. 10900, and 
section 4 of the Act of May 26, 1949 (63 Stat. Ill), it is ordered as 
follows : 

Sec. 1. Establishment of the Agency for International De- 
velopment. 

(a) There is established in the Department of State an agency to 
be known as the Agency for International Development (hereinafter 
referred to as the Agency) which shall be headed by an Administrator 
(hereinafter referred to as the Administrator), as provided in section 
102(b) of the Executive Order. 

(b) Effective on the date of abolition of the corporate Development 
Loan Fund and the International Cooperation Administration, the 
offices, entities, functions, property, records, and funds of the Inter- 
national Cooperation Administration, not otherwise disposed of by 
the Act, and the offices, entities, functions, property, and records of the 
corporate Development Loan Fund and the records of the Export- 
Import Bank of Washington transferred to the Department of State 
by or pursuant to sections 602 (a) and (b) of the Executive Order shall 
be placed in the Agency. The personnel, offices, entities, property, 
records, and funds of the corporate Development Loan Fund and the 
International Cooperation Administration m.ay be utilized by the Ad- 

iTlio words "the Foreifi;n Military Salps Act (82 Stat. 1320), the Executive Order of 
December 22, 1969, entitled 'Administration of Foreign Military Sales'." were added by 
Sec. 1 of Delegation of Autliorifv 104-7. For text of Foreign Military Sales Act, see page 
253. For text of Executive Order 11501, see page 271. 

(240) 



241 



ministrator prior to the abolition of the corporate Development Loan 
Fund and the International Cooperation Administration. The Office 
of Small Business shall be in the AgencT. 

(c) The officers provided for in sections 624(a) (2) and 624(a) (3) 
of the Act shall exercise such functions as the Administrator deems ap- 
propriate. Personnel of the International Cooperation Administra- 
tion and the corporate Development Loan Fund may be detailed to the 
Agency upon its establishment. On the date of abolition of the Inter- 
national Cooperation Administration and the corporate Development 
Loan Fund, such of the personnel of those agencies as the Administra- 
tor shall deem necessary shall be transferred to the Agency. 

(d) The Administrator is hereby designated effective on the date of 
the abolition of the corporate Development Loan Fund as the officer to 
whom shall be transferred and (1) who shall accept the assets of, as- 
sume the obligations and liabilities of, and exercise the rights estab- 
lished or acquired for the benefit of, or with respect to, the corporate 
Development Loan Fund, and (2) who shall accept the assets, obliga- 
tions, liabilities of, and rights established or acquired for the benefit of, 
or with respect to, the Export-Import Bank of Washington which are 
referred to in section 621 (e) of the Act. 

(e) The Administrator is hereby designated effective on the date of 
the abolition of the corporate Development Loan Fund as the person 
to be sued in the event of default in the fulfillment of the obligations 
of the corporate Development Loan Fund, and in the event of default 
in the fulfillment of those obligations of the Export-Import Bank of 
AVashington referred to in section 621 (e) of the Act. 

Sf:C. 2. FUNCTIOXS of the AD]\aXISTR.\T0R. 

(a) Exclusive of the functions otherwise delegated or reserved to 
the S':^crotary of the State herein there are hereby delegated to the 
Administrator : 

(1) The functions conferred upon the Secretary of State by 
section 101 of the Executive Order. 

(2) 2 So much of the functions conferred upon the Secretary of 
State by section 622(c) of the Act as relates to continuous super- 
vision and general direction of programs under Part I of the Act, 
not including chapter 4 of Part II of the Act. 

(3) ^ The functions of negotiating, concluding, and terminating 
international agreements under the Act other than agreements re- 
lating to security assistance programs, and under the Latin Ameri- 
can Development Act,^ subject to the concurrences required by 
the Department Circular 175 ]^rocedure. 

(4) Those functions referred to in section 605(a) of the Execu- 
tive Order with respect to the use of funds pursuant to section 
643(c) of the Act which were conferred upon the Secretary of 
State and the corporate Development Loan Fund. 

2 Sec. 1(a) of Delegation of Authority 104-6 amended paragraph (2), which formerly 
read as follows: "The functions conferred upon the Secretary of State by section 622(c) 
of the Act, to be exercised in consultation with the Under Secretary of State, the Under 
Secretary of State for Economic Affairs, and the Deputy Under Secretary of State for 
Political Affairs, as appropriate." Sec. 1(a) of Delegation of AxUthority 104-8 changed the 
period to a comma and added "not including chapter 4 of Part II of the Act." 

2 Sec. Kb) of Delegation of Authority 104-S amended paragraph (3). v/hich formerly 
read as follows : "The functions of negotiating, concluding, and terminating international 
agreements under the Act and the Act to Provide for Assistance in the Development of 
Latin America and in the Reconstruction of Chile, and for Other Purposes, subject to the 
concurrences required by Department Circular No. 175." 

* For text, see page 206. 



242 



(5) '^ The functions conferred upon the Secretary or Depart- 
ment of State by Executive Order 10900, exclusive of those so 
conferred by sections 3(a) and 3(b) (to the extent said functions 
relate to any functions under section 104 of the Agricultural 
Trade Development and Assistance Act of 1954 specifically re- 
served to the Secretary or Department of State by this paragraph 
or delegated to any other agency of the Government by Executive 
Order No. 10900), 3(b) (to the extent it relates to section 303 of 
said act), 4(d)(5),4(d)(8) (to the extent it relates to sections 
104(h), 104(o) and 104(p) of the Agricultural Trade Develop- 
ment and Assistance Act of 1954) , 4(d) (10) , 4(d) (11) , 4(d) (12) , 
and 4(d) (14) of that order. The exercise by the Administrator 
of the functions conferred upon the Secretary by section 3(a) of 
Executive Order No. 10900 shall be subject to the concurrences 
required by Department Circular No. 175. 

(6) The function conferred upon the Secretary of State by sec- 
tion 2 of the Act to provide for assistance in the development of 
Latin America and in the reconstruction of Chile, and for other 
purposes. 

(7) The functions conferred upon the Secretary of State under 
any provision of law, other than the Act and the Foreign Service 
Act of 1946, pertaining specifically, or generally applicable, to 
Foreign Service Reserve officers. Foreign Service Staff officers 
and employees, and alien clerks and employees, including the 
authority to prescribe or issue regulations, orders, and instruc- 
tions in pursuance of such provisions of law. 

(8) The functions conferred upon the Secretary of State by 
the determination of the President, pursuant to section 604(a) of 
the Act, dated October 18, 1961. 

(9) ' The functions conferred upon the Secretary of State by 
section 4 of Executive Order 11223.'' 

(b) The authority of the Foreign Service Act of 1946 to appoint, 
employ, and assign personnel, which the Administrator is authorized 
to exercise pursuant to section 625 (d)(2) of the Act, and the provisions 
of the Foreign Service Act which shall apply to personnel so ap- 
pointed or assigned shall consist of : 

(1) The authority available to the Secretary of State under 
the Foreign Service Act of 1946 (including section 571 of that 
Act) relating to Foreign Service Keserve officers, Foreign Serv- 
ice Staff officers and employees, and alien clerks and employees. 

(2) The authority available to the Secretary of State under 
sections 1021 through 1071 of the Foreign Service Act of 1946. 

(3) The authority available to the Board of Foreign Service 
under the Foreign Service Act of 1946. ^ 

(4) The authority to prescribe or issue in pursuance of the 
Foreign Service Act of 1946 and the Act, such regulations, orders, 
and instructions, as may be incidental to, or necessary for, or de- 

5 Seo. 1 of Delegation of Authority 104-2 amended paragraph (5), which formerly read 
as follows : "The functions conferred upon the Secretary or Department of State by 
Executive Order No. 10900, exclusive of those so conferred by sections 3. 4(d)(8) (to the 
extent It relates to sections 104(h), 104(o). and 104(p) of the Agricultural Trade Develop, 
ment and Assistance Act of 1954), 4(d) (10), 4(d) (11), 4(d) (12), and 4(d) (14) of that 
order." 

« Paragraph (9) was added by sec. 2 of Delegation of Authority No. 104-5. 
' For text, see page 248. 



243 



sirable in connection with, the carrying out of the provisions of 
section 625(d) (2) of the Act or the provisions of this Delegation 
of Authority. 

(5) The prohibitions contained in sections 1001 through 1005 
of the Foreign Service Act of 1946. 

(c) « [Revoked— 1972]. 

(d) The concurrence of the Secretary of State shall be required 
with respect to the exercise by the Administrator of so much of the 
functions herein delegated pursuant to section 625(d) (1) of the Act 
as consists of authorization of compensation at any of the rates pro- 
vided for the Foreign Service Reserve and Staff by the Foreign Serv- 
ice Act of 1946 for persons employed or assigned by agencies of the 
United States Government, otlier than the Agency. 

(e) * The Administrator shall perform so much of the functions 
under Title VIII of the Foreign Service Act of 1946 as relates to 
establisliing and maintaining retirement records for personnel par- 
ticipating in the Foreign Service Retirement and Disability System 
under section 625 (k) of the Act and for transferring such records to 
the Departm^ent of State upon the separation, retirement or death of 
such personnel. 

Sec. 3. Allocatiox of Funds. 

(a) There are hereby allocated to the Administrator the funds al- 
located to the Secretary of State by subsection (a) of section 501 of 
the Executive Order/° except such funds as are appropriated for pur- 
poses of section 4-81 and section 637 (b) of the Act. 

(b) The Administrator may allocate or transfer as appropriate any 
of the funds allocated to him to any agency or part thereof for obli- 
gation or expenditure thereby consistent with applicable law. 

Sec. 4. Successorship. The Agency and the Administrator shall 
be deemed to be the successor of the International Cooperation Admin- 
istration and the Director thereof, respectively, with respect to all 
functions delegated or redelegated to the International Cooperation 
Administration or the Director thereof. 

Sec. 5. Authorization to Department of Defense. The Secretary 
of Defense is authorized to perform any functions authorized by sec- 
tion 625(d)(1) of the Act to the extent that they relate to other 
functions under the Act administered by the Secretary of Defense: 
Provided. s That the authorization pursuant to section 625(d)(1) of 
the Act of compensation at any of the rates provided for the Foreign 
Service Reserve and Staff by the Foreign Service Act of 1946 shall be 
subject to the concurrence of the Secretary of State. 

Sec. 6. Functions Reserved to the Secretary of State or Other- 
wise Provided for. 

(a) There are hereby reserved to the Secretary of State : 

(1) The fimction conferred upon the President by section 
511(b) of the Act insofar as such function has been delegated to 
the Secretary of State by section 101 of the Executive Order. 



8 Subsection (c) was revoked by sec. 1(c) of Delegation of Authority 104-8. It read as 

follows: "(c) The Administrator shall be the offlcer with whom the Secretary of Defense 
shall consult pursuant to section 202 of the Executive Order." 

s This subsection effective Jan, 29. 1974 was added by Delegation of Authority No. 104-10. 

^° Section 1 of Delegation of Authority No. 104-9 added the words ". except such funds 
as are appropriated for purposes of section 481 of the Act." Delegation of Authority No. 
104-11, dated July 29, 1975, inserted immediately after "section 481" the words "and 
section 637(b)". 



244 



(9) The functions conferred upon the President by sections 
301(c) and 620(b) of the Act and the first sentence of section 143 
of the Mutual Security Act of 1954. 

(3) So much of the functions conferred upon the President by 
section 624(b) of the Act as consists of fixing the rate of compen- 
sation of the Administrator. 

(4) The function conferred upon the President by section 
624(e) (1) of the Act of appointing the Deputy and Assistant In- 
spector Generals, Foreign Assistance. 

(5) The function conferred upon the Secretary of State by the 
second sentence of section 624(e) (6) of the Act and section 614 
of the Mutual Security Act of 1954. 

(6) The function conferred upon the President by section 
625 (a) of the Act with respect to personnel in the Department of 
State, other than in the Agency. 

(7) The functions conferred upon the President by section 108 
of the Foreign Assistance and Related Agencies Appropriation 
Act, 1962. 

(8) ^^ The function of determining which are friendly nations 
within the meaning of section 107 of the Agricultural Trade 
Development and Assistance Act of 1954 for the purpose of 
negotiating and concluding agreements pursuant to the authority 
contained in section 3(a) of Executive Order 10900. 

(9) ^2 The function conferred upon the President by section 
35 (a) of the Foreign Military Sales Act. 

(b) The following functions are hereby delegated to officers of the 
Department of State as indicated : 

(1)^^ To the Under Secretary for Security Assistan^^e: 

(A) Exclusive of the functions reserved to the Secretary of 
State herein, the functions conferred upon the Secretary of 
State by section 101 of the ex-Executive order insofar as such 
functions relate to programs under Part II of the Act and by 
Executive Order 11501 relating to sales under the Foreign 
Military Sales Act. 

(B) Subject to section 2(a) (2) of this delegation of au- 
thority, the functions conferred upon the Secretary of State 
by section 622(c) of the Act and by section 2(b) of the For- 
eign Military Sales Act relating to continuous supervision 
and general direction of economic assistance and military 
assistance programs and military sales, including, but not 
limited to, whether there shall be a military assistance pro- 
gram for a country and the value thereof or a sale to a country 
and the amount thereof, to the end that such programs and 
sales are effectively integrated both at home and abroad and 
the foreign policy of the United States is best served thereby. 

(C) The functions conferred upon the Secretary of State 
by section 42(b) of the Foreign Military Sales Act, as 
amended. 



" Paragraph (8) was added by sec. 2 of Delegation of Authority No. 104-2. 

" Paragraph (9) was added by sec. 2 of Delegation of Authority No. 104-7. 

"Subsection (b)(1) was amended by see. 2(a) of Delegation of Authority 104-S. It 
formerly read as follows : "(1) To the Under Secretary of State : So much of the function? 
conferred upon the Secretary of State by section 622(c) of the Act and by section 2(b) of 
the Foreign Military Sales Act as relates to effective integration of economic assistance and 
military assistance and sales programs both at home and abroad so that the foreign policy 
of the United States is best served thereby." 



245 



(D) The functions conferred upon the President by section 
8(d) of Public Law 91-672^* (84 Stat. 2055). 

(E) The functions of negotiating, concluding, and termi- 
nating international agreements relating to security assist- 
ance programs, subject to the concurrences required by the 
State Department Circular 175 procedure. 

(F) The Under Secretary for Security Assistance shall be 
the officer with whom the Secretary of Defense shall consult 
pursuant to section 202 of the Executive order. 

(2) 15 16 Xo the Assistant Secretary of State for Economic Affairs: 

(A) Those functions conferred upon the President by the 
Mutual Defense Assistance Control Act of 1951. 

(B) Those functions conferred upon the Secretary of State 
as Administrator by the Mutual Defense Assistance Control Act 
of 1951. 

(C) Those functions conferred upon the President by sections 
601(b)(2) and 601(b) (3) of the Act. 

(J)) 17 rYi^Q function conferred upon the Secretary of State by 
section 3(b) of Executive Order No. 10900 of insuring that all 
functions exercised under section 303 of the Agricultural Trade 
Development and Assistance Act of 1954 are consistent with the 
foreijin policy of the United States. 

(3) To the Administrator, Bureau of Security and Consular 
Affairs : 

(A) Those functions conferred upon the President by section 
405(a) of the Mutual Security Act of 1954. 

(4) ^« To the Director, Bureau of Politico-Military Affairs ; 
Those functions conferred upon the President by section 414 

of the Mutual Security Act of 1953. 

(5) To the Senior Adviser for International Narcotics Matters : 

(A) those functions conferred upon the President by section 481 
of the Foreign Assistance Act of 1961, as amended, together with 
all those authorities contained in the Foreign Assistance Act, to 
the extent necessary or appropriate to accomplish the purposes of 
Section 481 of the Foreign Assistance Act. 

(B) the functions of negotiating, concluding and terminating 
international agreements relating to international narcotics pro- 



" For text, see page 269. 

15 Subsection (b)(2) was revoked by sec. 2(b) of Delegation of Authority 104-S. It read 
as follows : 

"(2) To the Director, Bureau of Politico-Military Affairs; 

"(A) So much of the functions conferred upon tlie Secretary of State by section 
622(c) of the Act and by section 2(b) of the Foreign Military Sales Act as relates to 
continuous supervision and general direction of programs under Part II of the Act 
and sales under the Foreign Military Sales Act. 

"(B) The functions conferred upon the President by section 34 of the Foreign 
Military Sales Act insofar as such functions have been delegated to the Secretary 
of State by section 1(f) of the Executive Order of December 22, 1969." 
"Section 2(c) of Delegation of Authority 104-8 redesignated subsections (b)(3), 
(b) (4), and (b) (5) as (b) (2), (b) (3), and (b) (4), respectively. 
" Subparagraph (D) was added by sec. 3 of Delegation of Authority 104-2. 
"Delegation of Authority 104-A redesignated Sec. 6(b)(1)(B) as Sec. 6(b)(3), and 
added the words "To the Director, Office of Munitions Control :" at the beginning. Dele- 
gation of Authority 104-3 substituted the words to this point for the words "To the 
Director. Office of Munitions Control". Delegation of Authority No. 104-7 substituted 
the words to this point for the words "To the Deputy i^ssistant Secretary for Politico- 
Military Affairs. Office of the Deputy Under Secretary of State for Political Affairs". 

Subsection (5) was added by Sec. 2 of Delegation of Authority No. 104-9 (effective 
Nov. 16. 1973). 



246 



grams subject to the concurrences required by the State Depart- 
ment Circular 175 procedure. 

(c) The Administrator, Bureau of Security and Consular Affairs, 
shall carry out the activities authorized by sections 405(c), 405(d), 
and 451(c) of the Mutual Security Act of 1954, except so much of the 
activities under section 451(c) of that Act as relates to programs ad- 
ministered by the Department of Health, Education, and Welfare on 
behalf of Cuban refugees. 

(d) The Administrator and the Secretary of Defense are author- 
ized to make the designations and standards provided for in section 
625(g) of the Act with regard to their respective functions under the 
Act. 

(q)^^ The Secretary of Health, Education, and Welfare is author- 
ized to perform any functions authorized by section 635(d) of the 
Act of the extent that they relate to programs under section 451(c) of 
the Mutual Security Act of 1954, as amended, administered by the Sec- 
retary of Health, Education, and Welfare on behalf of Cuban refugees 
and carried out in furtherance of the purposes of the Act with funds 
available mider the Act. 

(f) ^° The Administrator and any other officer to whom functions 
are delegated by this Delegation of Authority may, to the extent con- 
sistent with law : (1) delegate or assign any of the functions delegated 
or assigned to him by this Delegation of Authority, including with 
respect to the Administrator, authority to delegate or assign any of 
such functions to an officer of the Department of State, and (2) au- 
thorize any officer to whom functions are so delegated or assigned 
successively to redelegate or reassign any of such functions. 

(g) ^° Tlie Administrator and any other officer to whom functions 
are delegated by this Delegation of Authority may promxulgate from 
time to time, to the extent consistent with law, such rules and regula- 
tions as may be necessary and proper to carry out any of his f mictions. 

Sec. 7. General Provsisons. 

(a) (1)21 ^jr^j reference in this delegation of authority to any Act, 
order, determination, or delegation of authority shall be deemed to be 
a reference to such Act, order, determination, or delegation of author- 
ity as amended from time to time. 

(2) xVny reference in this delegation of authority to provisions of 
any appropriation Act shall be deemed to include a reference to any 
hereafter enacted provisions of law which are the same or substan- 
tially the same as such appropriation Act provisions. 

(3) Unless otherwise specified, any reference in this delegation of 
authority to part I of the Act shall be deemed to be a reference also to 
chapter 4 of part II, and any reference in this delegation of authority 

'-■^ Delegation of Authority No. 104-1 added subsection (e) and redesignated subsections 
(e) and (f) to be "(f)" and "(g)", respectively. Delegation of Authority No. 104-4 
amended subsection (f), effective March 4, 1964. Subsection (f) formerly read as follows: 
"The Administrator and any other officer to whom functions are delegated by this Dele- 
gation of Authority may, to the extent consistent with law, delegate or assign any of 
tbe functions delegated or assigned to him by this Delegation of Authority and authorize 
any of his subordinates to whom functions are so delegated or assigned sucessively to 
redelegate or reassign any of such functions." 

-1 Section 3(a) of Delegation of Authority 104-8 amended subsection (a), which 
formerly read as follows : 

"(a) Any reference in this Delegation of Authority to any act, order, determination, or 
Delegation of Authority shall be deemed to be a reference to such Act. order, determina- 
tion, or Delegation of Authority as amended from time to time. Any reference in this 
Delegation of Authority to provisions of any appropriation Act shall be deemed to include 
a reference to any hereafter enacted provisions of law which are tbe same or substan- 
tially the same as such appropriation Act provisions." 



247 



to part II of the Act shall be deemed not to include chapter 4 of such 
part II, in accordance with section 202(b) of Public Law 92-226" 
(86 Stat. 27). 

(4) Any reference in this delegation of authority to security assist- 
ance shall" hs deemed to include all forms of security assistance, in- 
cluding military assistance under part II of the Act, sales, credit sales 
and guarantees under the Foreign Military Sales Act, security sup- 
porting assistance under chapter 4 of part II of the Act, and naval 
vessel loans as authorized by law. 

(b) This Delegation of Authority supersedes Delegation of Au- 
thority No. 85-10 of February 2, 1961, Redelegation of Authority No. 
85-lOA of February 2, 1961, and Delegation of Authority No. 103-1 
of Septem.ber 13, 1961 : Provided, That all determinations, authoriza- 
tions, regulations, rulings, certificates, orders, directives, contracts, 
agreements, and other actions made, issued, or entered into with respect 
to any function afTected by this Delegation of Authority and not 
revoked, superseded, or otherwise made inapplicable before the effec- 
tive date of this Delegation of Authority shall continue in full force 
and effect until amended, modified, or terminated by appropriate 
authority. 

(c) " Notwithstanding any provision of this delegation of authority, 
the Secretary of State or the Deputy Secretary of State may at any 
timxe exercise auy function delegated to any officer of the Department 
of State, including the Agency, by this delegation of authority. 

(d) This Delecrfttion of Authority shall be deemed to have become 
effective on Sept.^30, 1961. 

Chester Bowles, 
Acting Secretary of State, 

Dated : November 3, 1961. 



Note. — The last paragraph of Amendment No. 8 to Delegation 
of Authority No. 104 (37 F.R. 21449) provides: 

"The foregoing amendm.ents to State Department Delegation 
of Authority No. 104 shall becom.e effective upon publication in 
the Federal Register.^* Any determinations, authorizations, 
regulations, rulings, certificates, orders, directives, contracts, 
agreements, standards, criteria, and other actions made, issued 
or entered into with respect to any function affected by this 
delegation of authority and not reA'Oked, superseded, or other- 
wise made inapplicable before such effective date shall continue 
in full force and effect until amended, modified or terminated 
by appropriate authority." 



"Section 202(b) of the Foreign Assistance Act of 1971 provides as follows: 
"Chapter 4 of part I of the Foreign Assistance Act of 1961 Is hereby repealed. Refer- 
ences to such chapter or any sections thereof shall hereafter be deemed to be references 
to chapter 4 of part II of the Foreign Assistance Act of 1961, as added by subsection 
(a) of this section, or to appropriate sections thereof. All references to part I of the 
Foreign Assistance Act of IGGl shall hereafter be deemed to be references also to chapter 
4 of part II, and all references to part II of such Act shall be deemed not to include 
chaoter 4 of such part II." 

2» Section 3(2) of Delegation of Authority 104-8 amended Subsection (c), which for- 
merly read as follows : 

"(c) Notwithstanding any provision of this Delegation of Authority, the Secretary of 
State may at any time exercise any function delegated to any officer of the Department 
of State, including the Agency, by tliis Delegation of Authority/' 

2* October 11, 1972. 



c. Executive Order 11223 



May 12, 1965, 30 F.R. 6635, 3 CFR, 1964-65 Comp., p. 312 

Relating to the Perfor]mance of Functions Authorized by the 
Foreign Assistance Act of 1961, as Amended 

By virtue of the authority vested in me by section 633 of the For- 
eign Assistance Act of 1961, as amended, 75 Stat. 454 (22 U.S.C. 2393) , 
it is hereby determined that, to the extent hereinafter indicated, the 
performance of functions authorized by that Act, as amended, and any 
predecessor legislation, without regard to the laws specified in the 
numbered subdivisions of sections 1 and 2 of this order and without 
regard to consideration as specified in sections 3 and 4 of this order 
will further the purposes of the Foreign Assistance Act of 1961, as 
amended : 

Section 1. With respect to functions authorized by the Foreign 
Assistance Act of 1961, as amended (22 U.S.C. 2151 et seq.), and any 
predecessor legislation except those functions exercised by the Depart- 
ment of Defense under authoritv of sections 621 and 623 of the For- 
eign Assistance Act of 1961 (22 U.S.C. 2381 and 2383) : 

(1) The Act of March 26, 1934, 48 Stat. 500, as amended (15 
U.S.C. 616a). 

(2) Section 3648 of the Eevised Statutes, as amended, 60 Stat. 
809 (31 U.S.C. 529). 

(3) Section 305 of the Federal Propertv and Administrative 
Services Act of 1949, 63 Stat. 396, as amended (41 U.S.C. 255). 

(4) Section 3709 of the Revised Statutes, as amended (41 
U S C 5) 

(5) Section 3710 of the Revised Statutes (41 U.S.C. 8). 

(6) Section 2 of title III of the Act of March 3, 1933, 47 Stat. 
1520 (41 U.S.C. 10a). 

(7) Section 3735 of the Revised Statutes (41 U.S.C. 13). 

(8) Section 304(c) of the Federal Property and Administra- 
tive Services Act of 1949, as added by the Act of October 31, 1951, 
65 Stat. 700 (41 U.S.C. 254(c) ) , but only with respect to contracts 
entered into with foreign governments or agencies thereof for the 
rendering of services to the United States or an agency thereof 
within the continental limits of the United States. 

(9) Section 901(a) of the Merchant Marine Act, 1936, 49 Stat. 
2015. as am.ended (46 U.S.C. 1241(a) ).^ 

Sec. 2. With respect to purchases authorized to be made outside the 
limits of the United States or the District of Columbia under the For- 
ei^ Assistance Act of 1961, as amended, and any predecessor legis- 
lation: 

(1) Section 2276(a) of Title 10 of the United States Code. 

(2) Section 2313(b) of Title 10 of the United States Code. 

(248) 



249 



(3) Section 304(c) of the Federal Property and Administra- 
tive Services Act of 1949, as added by the Act of October 31, 1951, 
65 Stat. 700 (41 U.S.C. 254(c) ). 

(4) Section 1301 of the Second War Powers Act, 1942, 56 Stat. 
185 (50 U.S.C. App. 643), as extended by the provisions of the 
Act of June 30, 1953, 67 Stat. 120. 

(5) Section 3(b) of the Act of August 28, 1958, 72 Stat. 972 
(50 U.S.C. 1433(b)), but only with respect to contracts in which 
the inclusion of the clause required by section 3(b) , or the com- 
pliance with that clause, if included in a contract, is deemed by 
the executive or military department concerned to be imprac- 
ticable. 

Sec. 3. With respect to cost-type contracts heretofore or hereafter 
made with non-profit institutions under which no fee is charged or 
paid, amendments and modifications of such contracts may be made 
with or without consideration and may be utilized to accomplish the 
same things as any original contract could have accomplished, irre- 
spective of the time or circumstances of the making, or the form of the 
contract amended or modified, or of the amending or modifying con- 
tract and irrespective of rights which may have accrued under the 
contract or the amendments or modifications thereof. 

Sec. 4. With respect to contracts heretofore or hereafter made, other 
than those described in Section 3 of this order, amendments and modi- 
fications of such contracts may be made with or without consideration 
and may be utilized to accomplish the same things as any original 
contract could have accomplished, irrespective of the time or circum- 
stances of the making, or the form of the contract amended or modified, 
or of the amending or modifying contract, and irrespective of rights 
which may have accrued under the contract or the amendments or 
modifications thereof, if the Secretary of State determines in each case 
that such action is necessary to protect the foreign policy interests of 
the United States. 

Sec. 5. Executive Order No. 10784 of October 1, 1958, and Execu- 
tive Order No. 10845 of October 12, 1959, are hereby superseded. 

Lyndon B. Johnson. 

The White Kotjse. May 12, 1965. 



d. Executive Order 11579 



January 19, 1971, 36 F.R. 969, January 21. 1971 

Overseas Private Investment Corporation" 

By virtue of the autliority vested in me by the Foreign Assistance 
Act of 1961 (75 Stat. 424), as amended (hereinafter the "Act"), and 
section 301 of title 3 of the United States Code, and as President of the 
United States, it is ordered as follows : 

Section 1. Transfer to Overseas Private Investvient Corporation, 
All obligations, assets and related rights and responsibilities arising 
out of, or related to, predecessor programs and authorities similar to 
those provided for in sections 234 (a), (b) and (d) of the Act are 
hereby transferred to the Overseas Private Investment Corporation 
(hereinafter the "Corporation"). 

Sec. 2. Delegation of functions, (a) The functions conferred upon 
the President by sections 621 (b) , 625 (d) (1) , 627, 628, 629 (b) , 630 and 
635(d) of the Act insofar as such functions relate to the operation of 
the Corporation, its activities, or personnel are hereby delegated to the 
Corporation : Provided^ That the concurrence of the Secretary of State 
shall be required with respect to the exercise by the Corporation of so 
much of the functions herein delegated pursuant to section 625(d) (1) 
of the Act as consists of authorization of compensation at any of the 
rates provided for the Foreign Service Reserve and Staff by the For- 
eign Service Act of 1946 for persons emplo3'ed or assigTied by the 
Corporation. 

(b) The function of prescribing regulations relating to the rein- 
statement or restoration of officers and employees of the Corporation 
to other government positions, when their appointment to a position in 
the^ Corporation was made from another government position and 
their separation from the Corporation was not made for cause, is 
hereby delegated to the Civil Service Commission. 

Sec. 3. Allocation and transfer of funds. Funds made available 
under section 232 of the Act (repealed by section 105 of the Foreign 
Assistance Act of 1969) which are obligated but unexpended are 
hereby transferred to the Corporation. 

Sec. 4. General provisions, (a) As used in this order, the words 
"function" or "functions" include any duty, obligation, power, author- 
ity, responsibility, right, privilege, discretion, or activity. 

(b) The Corporation shall be deemed to be the successor of the 
Agency for International Development and the Administrator there- 
of, vrith respect to all functions vested in the Corporation pursuant to 
law. 

(c) Except to the extent that they may be inconsistent with this 
orcler, all determinations, authorizations, regulations, rulings, certiii- 
catcs, orders, directives, contracts, agreements, and other actions made, 
issued, or entered into with respect to any function affected by this 

(250) 



251 



order and not revoked, superseded or otherwise made inapplicable be- 
fore the date of this order, shall continue in full force and effect until 
amended, modified, or terminated by appropriate authority. 

(d) Executive Order No. 10973 of November 3, 1961, as amended,^ 
is hereby superseded insofar as any provision therein is in conflict with 
any provision herein. 

(e) The provisions of this order shall become effective upon adop- 
tion by the Board of Directors of bylaws for the Corporation. 

KiCHARD Nixon. 

The White House, J anuary 19^ 1971. 



1 For text, see page 232. 



5. Foreign Military Sales 
a. The Foreign Military Sales Act, as amended 



CONTENTS 

Chapter 1 — Foreign and National Security Policy Objectives and Re- Pao 

straints 254 

Section 1 — The Need for International Defense Cooperation and j\Iili- 

tar}' Export Controls 254 

Section 2 — Coordination With Foreign PoUcy 255 

Section 3— EUgibility 256 

Section 4 — Purposes for Which ISIilitary Sales by the United States 

Are Authorized 258 

Chapter 2 — Foreign ^Nlilitarj- Sales Authorizations 258 

Section 21— Cash Sales From Stock 258 

Section 22 — Procurement for Cash Sales 259 

Section 23— Credit Sales 259 

Section 24 — Guaranties 260 

Chapter 3 — Military Export Controls 261 

Section 31 — Authorization and Aggregate Ceiling on Foreign MiUtary 

Sales Credits 261 

Section 32 — Prohibition Against Certain ^Military Export Financing 

by Export-Import Bank 261 

Section 33 — P^egional CeiUngs on Foreign ]).Iilitary Sales 262 

Section 34 — Foreign Military Sales Credit Standards 262 

Section 35 — Foreign Military Sales to Less Developed Countries 262 

Section 36 — Reports on Commercial and Government MiUtary 

Exports 262 

Section 37 — Fiscal Provisions Relating to Foreign Military Sales 

Credits 263 

Chapter 4 — General, Administrative, and Miscellaneous Provisions 264 

Section 41— Effective Date 264 

Section 42 — General Provisions 264 

Section 43 — Administrative Expenses 265 

Section 44 — Statutory Construction 265 

Section 45 — Statutes Repealed and Amended 265 

Section 46 — Saving Provisions 266 

Section 47 — Definitions 266 

(253) 



a. The Foreign Military Sales Act, as amended 

Public Law 90-629 [H.R. 15681], 82 Stat. 1320, approved October 22, 1968, as 
amended by Public Law 91-672 [H.R. 15628], 84 Stat. 2053, approved Jan- 
uary 12, 1971; Public Law 92-226 [Foreign Assistance Act of 1971; S. 2819], 
86 Stat. 20, 32, approved February 7, 1972; Public Law 93-189 [Foreign As- 
sistance Act of 1973; S. 1443], 87 Stat. 714, 729, approved December 17, 1973; 
and Public Law 93-559 [Foreign Assistance Act of 1974; S. 3394], 88 Stat. 1795, 
1813, approved December 31, 1974 



Note. — At publication time of tliis volume neither the fiscal 
year 1976 Appropriations for Development Assistance Author- 
izations nor the International Security Assistance legislation 
had been enacted. This printing shows no 1975 amendments to 
the Foreign Military Sales Act. 



AN ACT To consolidate and revise foreign assistance legislation relating to 
reimbursable military exports. 

Be it enacted hy the Senate and House of Representatives of the 
United States of Ainerica in Congress assembled^ That this Act may 
be cited as "The Foreign Military Sales Act''. 

Chapter 1 — Foreign and National Security Policy Objectives and 

Restraints 

Sec. 1,^ The Need for International Defense Cooperation and 
Military Export Controls. — As declared by the Congress in the Arms 
Control and Disarmament Act, an ultimate goal of the United States 
continues to be a world which is free from the scourge of war and the 
dangers and burdens of armaments ; in which the use of force has been 
subordinated to the rule of law; and in which international adjust- 
ments to a changing world are achieved peacefully. In furtherance of 
that goal, it remains the policy of the United States to encourage re- 
gional arms control and disarmament agreements and to discourage 
arms races. 

The Congress recognizes, however, that the United States and other 
free and independent countries continue to have valid requirements 
for effective and mutually beneficial defense relationships in order to 
maintain and foster the environment of international peace and secu- 
rity essential to social, economic, and political progress. Because of 
the growing cost and complexity of defense equipment, it is increas- 
ingly difficult and uneconomic for any country, particularly a develop- 
ing country, to fill all of its legitimate defense requirements from its 



* 22 use 2731. 



(254) 



255 



own design and production base. The need for international defense 
cooperation among the United States and those friendly countries to 
which it is allied by mutual defense treaties is especially important, 
since the effectiveness of their armed forces to act in concert to deter 
or defeat aggression is directly related to the operational compati- 
bility of their defense equipment. 

Accordingly, it remains the policy of the United States to facilitate 
the common defense by^ entering into international arrangements with 
friendly countries which further the objective of applying agreed 
resources of each country to programs and projects of cooperative 
exchange of data, research, development, production, procurement, 
and logistics support to achieve specific national defense requirements 
and objectives of mutual concern. To this end, this Act authorizes sales 
by the United States Government to friendly coimtrics having sulS- 
cient wealth to maintain and equip their own military forces at ade- 
quate strength, or to assume progressively larger shares of the costs 
thereof, without undue burden to their economies, in accordance with 
the restraints and control measures specified herein and in furtherance 
of the security objectives of the United States and of the purposes and 
principles of the United Nations Charter. 

It is the sense of the Congress that all such sales be approved only 
when they are consistent with the foreign policy interests of the 
United States, the purposes of the foreign assistance program of the 
United States as embodied in the Foreign Assistance Act of 1961, as 
amended,* the extent and character of the military requirement, and 
the economic and financial capability of the recipient country, with 
particular regard being given, where appropriate, to proper balance 
among such sales, grant military assistance, and economic assistance 
as well as to the impact of the sales on programs of social and eco- 
nomic development and on existing or incipient arms races. 

It is further the sense of Congress that sales and guaranties under 
sections 21, 22, 23, and 24, shall not be approved where they would 
have the effect of arming military dictators who are denying the 
growth of fundamental rights or social progress ^ to their own people : 
Provided^ That the President may waive this limitation when he 
determines it would be important to the security of the United States, 
and promptly so reports to the Speaker of the House of Representa- 
tives and the Committee on Foreign Relations in the Senate. 

In order to reduce the role of the United States Government in the 
furnishing of defense articles and defense services to foreign coun- 
tries and international organizations, and return such transactions to 
commercial channels, the United States Government shall reduce its 
sales, credit sales, and guaranties of such articles, and defense services 
as soon as, and to the maxim^um extent, practicable.* 

Sec. 2.* Coordination With Foreign Policy. — (a) Nothing con- 
tained in this Act shall be construed to infringe upon the powers or 
functions of the Secretary of State. 



* For text, see page 5. 

•Sec. 4 of Public Law 91-672 (Foreign Military Sales Act Amendments of 1971) sub- 
stituted the words "denying the growth of fundamental rights or social progress" in lieu 
of "denying social progress". 

*The last paragraph was added by Sec. 25(1) of the FAAct of 1973. 

• 22 use 2752. 

65-998—76 18 



256 



(b) Under the direction of the President, the Secretary of State, 
taking into account other United States activities abroad, such as mili- 
tary assistance, economic assistance, and food for freedom, shall be 
responsible for the continuous supervision and general direction of 
sales under this Act, including, but not limited to, determining 
whether there shall be a sale to a country and the amount thereof, to 
the end that sales are integrated with other United States activities 
and the foreign policy of the United States is best served thereby. 

(c) The President shall prescribe appropriate procedures to assure 
coordination among representatives of the United States Government 
in each countr}?^, under the leadership of the Chief of the United States 
Diplomatic Mission. The Chief of the diplomatic mission shall make 
sure that recommendations of such representatives pertaining to sales 
are coordinated with political and economic considerations, and his 
comments shall accompany such recommendations if he so desires. 

Sec. 3,^ Eligibility. — (a) No defense article or defense service shall 
be sold b3^ the United States Government under this Act to any coun- 
try or international organization unless — 

(1) the President finds that the furnishing of defense articles 
and defense services to such country or international organiza- 
tion will strengthen the security of the United States and promote 
world peace; 

(2) the country or international organization shall have agreed 
not to transfer title to, or possession of, any defense article so 
furnished to it to anyone not an officer, employee, or agent of that 
country or international organization and not to use or permit 
the use of such article for purposes other than those for which 
furnished ^ unless the consent of the President has first been 
obtained ; 

( 3 ) ^ the country or international organization shall have agreed 
that it will maintain the security of such article and will provide 
substantially the same degree of security protection afforded to 
such article by the United States Government : and 

(4) ^ the country or international organization is otherwise eli- 
gible to purchase defense articles or defense services. 

In considering a request for approval of any transfer of any weapon, 
weapons system, munitions, aircraft, military boat, military vessel, 
or other implement of war to another country, the President shall 
not give his consent under paragraph (2) to the transfer unless the 
United States itself would transfer the defense article under considera- 
tion to that country, and prior to the date he intends to give his con- 
sent to the transfer, the President notifies the Speaker of the House 
of Representatives and the Committee on Foreign Relations of the 
Senate in writing of each such intended consent, the justification for 
giving such consent, the defense article for which he intends to give 



6 22 use 2753. 

Sec. 25(2) of the FAAct of 1973 struck out "and" at the end of paragraph (2) and 
added the words to this point, beginning with "and not to use or permit". 

8 Sec. 25(2) (B) of the FAAct of 1973 added paragraph (3) and redesignated former 
paragraph (3) as paragraph (4). 



257 



his consent to be so transferred, and the foreign country to which that 
defense article is to be transferred. In addition, the President shall 
not give his consent under paragraph (2) to the transfer of any sig- 
nificant defense articles on the United States Munitions List unless 
the foreign country requesting consent to transfer agrees to demili- 
tarize such defense articles prior to transfer, or the proposed recipient 
foreign country provides a commitment in writing to the United States 
Government that it will not transfer such defense articles, if not de- 
militarized, to any other foreign country or person without first obtain- 
ing the consent of the President.^ The President shall promptly submit 
a report to the Speaker of the House of Kepresentatives and to the 
Committee on Foreign Relations of the Senate on the implementation 
of each agreement entered into pursuant to clause (2) of this subsection. 

(b) No sales, credits, or guaranties shall be made or extended 
under this Act to any country during a period of one year after such 
country seizes, or takes into custody, or fines an American fishing ves- 
sel for engaginfi: in fishing more than twelve miles from the coast of 
that country. The President may waive the provisions of this sub- 
section when he determines it to be important to the security of the 
United States or he receives reasonable assurances from the country 
involved that future violations will not occur, and promptly so reports 
to the Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate. The provisions of this subsection 
shall not be applicable in any case governed by any international 
agreement to which the United States is a party. 

(c) ^^ Except as otherv^ise provided in subsection (d), any foreign 
country v.hich hereafter uses defense articles or defense services fur- 
nished such country under this Act, in substantial violation of any 
provision of this Act or any agreement entered into under this Act, 
shall be immediately ineligible for further cash sales, credits, or 
guarantees. 

(d) ^2 A country shall remain ineligible in accordance with subsec- 
tion (c) of this section until such time as the President determines 
that such violation has ceased, that the coimtry concerned has given 

»The words to this point, beprinninj? with "In considering a request for approval" 
were added by Sec. 25(2) (C) of thp FA Act of 1973. 

10 Sec. 1 of Public Law 91-672 (Foreign Military Sales Act Amendments of 1971) 
amended subsection (b). which formerly read as follows: 

"(b) No defense article or defense service shall be sold by the United States Govern- 
ment under this Act to any country which, after the date of enactment of this Act, seizes 
or takes into custody or fines an American fishing vessel engaged in fishing more than 
twelve miles from the coast of that country. The President may waive the provisions 
of this subsection when he determines it to be important to the security of the United 
States, and promptly so reports to the Speaker of the House of Representatives and the 
Committee on Foreign Relations of the Senate." 

^^^^Subsection (c) and former subsection (d) were added by Sec. 25(2) (D) of the FAAct 

i^Sec. 45(a) (1) of the FAAct of 1974 amended subsection (d), which formerly read as 
follows: "(d) No sophisticated jet aircraft or spare parts and associated ground equip- 
ment for such aircraft, shall be furnished under this or anv other Act to any foreign 
country on or after the date that the President determines that such countrv has violated 
any agreement it has made in accordance with paragraph (2) of subsection (a) of this 
section or section 505(a) of the Foreign Assistance Act of 1961 or anv other provision 
ot law requiring similar agreements. Such country shall remain Ineligible in accordance 
with this subsection until such time as the President determines that such violation has 
ceased, that the country concerned has given assurances satisfactory to the President that 
such violation will not reoccur, and that, if such violation involved the transfer of so- 
phisticated weapons without the consent of the President, such weapons have been re- 
turned to the country concerned." 



258 



assurances satisfactory to the President that such violation will not 
recur, and that, if such violation involved the transfer of sophisticated 
weapons without the consent of the President, such weapons have been 
returned to the country concerned. 

Sec. 4.^2 Purposes for Which Military Sales by the United States 
Are Authorized. — Defense articles and defense services shall be sold 
by the United States Government under this Act to friendly countries 
solel}^ for internal security, for legitimate self-defense, to permit the 
recipient country to participate in regional or collective arrangements 
or measures consistent with the Charter of the United Nations, or 
otherwise to permit the recipient country to participate in collective 
measures requested by the United Nations for the purpose of main- 
taining or restoring international peace and security, or for the pur- 
pose of enabling foreign military forces in less developed friendly 
countries to construct public works and to engage in other activities 
helpful to the economic and social development of such friendly coun- 
tries. It is the sense of the Congress that such foreign military forces 
should not be maintained or established solely for civic action activi- 
ties and that such civic action activities not significantly detract from 
the capablity of the military forces to perform their military missions 
and be coordinated with and form part of the total economic and social 
development eifort: Provided^ That none of the funds contained in 
this authorization shall be used to guarantee, or extend credit, or 
participate in an extension of credit in connection with any sale of 
sophisticated weapons systems, such as missile systems and jet air- 
craft for military purposes, to any underdeveloped country other 
than Greece, Turkey, Iran, Israel, the Republic of China, the Phil- 
ippines and Korea unless the President determines that such financ- 
ing is important to the national security of the United States and re- 
ports within thirty days each such determination to the Congress. 

Chapter 2— Foreign Military Sales Authorizations 

Sec. 21.^* Cash Sales From Stock. — The President may sell defense 
articles from the stocks of the Department of Defense and defense 
services of the Department of Defense to any friendly country or 
international organization if such country or international organiza- 
tion agrees to pay not less than the value thereof in United States 
dollars. Payment shall be made in advance or, as determined by the 
President to be in the best interests of the United States, within a 
reasonable period not to exceed one hundred and twenty days after 
the delivery of the defense articles or the rendering of the defense 
services. 



"22 use 2754. 
"22 U.S.C. 2761. 



259 



Sec. 22." Procurement for Cash Sales. — (a) Except as otlierwise 
provided in this section, the President may, without requirement for 
charo:e to any appropriation or contract authorization otherwise pro- 
vided, enter into contracts for the procurement of defense articles or 
defense services for sale for United States dollars to any foreign 
country or international organization if such country or inter- 
national organization provides the United States Government with 
a dependable undertaking (1) to pay the full amount of such con- 
tract which will assure the United States Government against any 
loss on the contract, and (2) to make funds available in such amounts 
and at such times as may be required to meet the payments required 
by the contract and any damages and costs that may accme from the 
cancellation of such contract, in advance of the time such payments, 
damages, or costs are due. 

(b) The President may, when he determines it to be in the na- 
tional interest, accept a dependable undertaking of a foreign coun- 
try or international organization with respect to any such sale, to 
make full payment within 120 days after delivery of the clefense 
articles or tlie rendering of the defense services. Appropriations 
available to the Department of Defense may be used to meet the pay- 
ments required by the contracts for the procurement of defense arti- 
cles and defense services and shall be reimbursed by the amounts 
subscvquently received from the country or international organiza- 
tion to whom articles or services are sold. 

Sec. 23.^^ Credit Sales. — The President is authorized to finance 



^ Sec. 25(3) of the FAAct of the 1973 amended Sec. 22, which formerly read as follows : 
"Sec. 22. Procurement for Cash Sales. — The President may, without requirement for 
charge to any appropriation or contract authorization otherwise provided, enter into 
contracts for tlie procurement of defense articles or defense services for sale for United 
States dollars to any friendly country or international organization if such country or 
international organization provides the United States Government with a dependable under- 
taking (1) to pay the full amount of such contract which will assure the United States 
Government agains^ any loss on the contract, and (2) to make funds avallal)le in such 
amounts and at such times as may be required to meet the payments required by the 
contract, and any damages and costs that may accrue from the cancellation of such 
contract, in advance of the time such payments, damages, or costs are due : Provided, 
That the President may, when he determines it to be in the national interest accept a 
dependable undertaking to make full payment within one hundred and twenty days after 
delivery of the defense articlet;, or the rendering of the defense services, and appropria- 
tions available to the Department of Defense may be used to meet the payments required 
by the contracts and shall be reimbursed by the amounts subsequently received from the 
country or international organization: Provided further. That the President may. when 
he determines it to be in the national interest, enter into sales agreements with pur- 
chasing countries or international organizations which fix prices to be paid by the pur- 
chasing countries or international organizations for the defense articles or defense serv- 
ices ordered. Funds made available under section 31 for financing sales shall be used to 
reimburse the applicable appropriations in the amounts required by the contracts which 
exceed the price so fixed, except that such reimbursement shall not be required upon 
determination by the President that the continued production of the defense article being 
sold is advantageous to the Armed Forces of the United States, Payments by purchasing 
countries or international organizations which exceed the amounts required by such 
contracts shall be transferred to the general fund of the Treasury. To the maximum ex- 
tent po'^sible. prices fixed under any such sales agreement shall be sufRcIent to reimburse 
the United States for the cost of defense articles or defense services ordered. The Presi- 
dent shall submit to the Congress promptly a detailed report concerning any fixed-price 
sales agreement under which the aggregate cost to the United States exceeds the aggregate 
amount required to be paid by the purchasing country or international organization. No 
sales of unclassified defense articles shall be made to the government of any economically 
developed nation under the provisions of this section unless such articles are not gener- 
ally available for purchase by such nations from commercial sources in the United States: 
Provided. Itowever, That the President may waive the provisions of this sentence when 
he determines that the waiver of such provisions is in the national interest." 

18 22 use 2763 Sec. 4.5(a)(2) of the FAAct of 1974 amended Sec. 23. which formerly 
read as follows : "Sec. 23. Credit Sales. — The President is hereby authorized to finance 
pjocnrements of defense articles and defense services by friendly countries and interna- 
tional organizations on terms of repayment to the United States' Government of not less 
than the value thereof in United States dollars within a period of not to exceed ten 
years after the delivery of the defense articles or the rendering of the defense services." 



260 



procurements of defense articles and defense services by friendly for- 
eign countries and international organizations on terms requiring the 
payment to the United States Government in United States dollars 
of— 

(1) the value of such articles or services within a period not 
to exceed ten years after the delivery of such articles or the ren- 
dering of such services : and 

(2) interest on the unpaid balance of that obligation for pay- 
ment of the value of such articles or services, at a rate equivalent 
to the current average interest rate, as of the last day of the month 
preceding the financing of such procurement, that the United 
States Government pays on outstanding marketable obligations 
of comparable maturity, unless the President certifies to Con- 
gress that the national interest requires a lesser rate of interest 
and states in the certification the lesser rate so required and the 
justification therefor. 

Sec. 24.^^ Guaranties. — (a) The President may guarantee any indi- 
vidual, corporation, partnership, or other juridical entity doing busi- 
ness in the United States (excluding United States Government agen- 
cies other than the Federal Financing Bank)^^ against political and 
credit risks of nonpayment arising out of their financing of credit sales 
of defense articles and defense services to friendly countries and inter- 
national organizations. Fees shall be charged for such guaranties. 

(b) Tlie President may sell to any individual, corporation, partner- 
ship, or other juridical entity (excluding United States Government 
agencies other than the Federal Financing Bank)^^ promissory notes 
issued by friendly countries and international organizations as evi- 
dence of their obligations to make repaym.ents to the United States 
on account of credit sales financed under section 23, and may guarantee 
payment thereof. 

(c) Funds made available to carry out this Act shall be obligated 
in an amount equal to 10 per centum of the principal amount of 
contractual liability related to any guaranty issued under this section, 
and all the funds so obligated shall constitute a single reserve for the 
payment of claims under such guaranties. ±\.nj funds so obligated 
v^hich are deobligated from time to time during any current fiscal 
year as being in excess of the amount necessary to maintain a frac- 
tional reserve of 10 per centum of the principal amount of con- 
tractual liability under outstanding guaranties shall be transferred to 
the general fund of the Treasury. Any guaranties issued hereunder 
shall be backed by the full faith and credit of the United States. 

"22 use 2764. 

18 Sec. 45(a) (3) of the FAAct of 1974 substituted the words "(excluding United States 
Government agencies other than the Federal Financing Bank)" in lieu of "(excluding 
United States Government agencies)". 

19 Sec. 25(4) (A) of the FAAct of 1973 substitutes the words "to carry out this Act" 
In lieu of "pursuant to section 31". 

20 Sec. 45(a)(4) of the FAAct of 1974 substituted "10" in lieu of "25". 

21 The words "principal amount of" were added by Sec. 25(4) (B) of the FAAct of 1973. 



261 



XoTE. — The change effected by the amendment to section 2-I:(c) 
(see footnote 20) was retroactive to July 1, 1974. Obligations 
initially charged against appropriations made available for pur- 
poses authorized by section 31(a) of the Foreign Military Sales 
Act after June 30, 1974, and prior to the enactment of this section 
in an amount equal to 25 per centum of the principal amount of 
contractual liability related to guaranties issued pursuant to sec- 
tion 24(a) of that Act are required to be adjusted to reflect this 
amendment with proper credit to the appropriations made avail- 
able in the fiscal year 1975 to carry out that Act. (Sec. 45(b) of 
the FAAct of 1974.) 



Chapter 3 — Military Export Controls 

Sec. 31.22 Authorization and Aggregate Ceiling on Foreign Mili- 
tary Sales Credits. — (a) There is hereby authorized to be appropri- 
ated to the President to carry out this Act not to exceed $405,000,000 
for the fiscal year 1975.2^ Unobligated balances of funds made avail- 
able pursuant to this section are hereby authorized to be continued 
available by appropriations legislation to carry out this Act. 

(b) The aggregate total of credits, or participations in credits, ex- 
tended pursuant to this Act and of the principal amount of loans 
guaranteed pursuant to section 24(a) shall not exceed $872,500,000 for 
the fiscal year 1975 of which amount not less than $300,000,000 shall 
be available to Israel only.^^ Of the funds made available under sub- 
section (a) of this section, $100,000,000 shall first be obligated with 
respect to financing the procurement of defense articles and defense 
ser\aces by Israel under section 23 of this Act, except that Israel shall 
be released from contractual liability to repay the United States Gov- 
ernment for the defense articles and defense services so financed.-'^ 

Sec. 32." Prohibition Against Certain Military Export Financ- 
ing by Export-Import Bank. — N'ot withstanding any other provision 
of law, no funds or borroAving authority available to the Export- 
Import Bank of the United States shall be used by such Bank to 
participate in any extension of credit in connection with any agree- 
ment to sell defense articles and defense services entered into with 
any economically less developed country after June 30, 1968. 



22 22 use 2771. 

23 Sec. 45 (a) 6 of the FAAct of 1974 substituted $405,000,000 for fiscal year 197.J in lieu 
of S325,000,000 for the fiscal year 1974". 

2* Sec. 45(a)(7)(A) of the FAAct of 1974 substituted $872,500,000 for the fiscal year 
1975" in lieu of $730,000,000". 

25 Sec. 25(G) of the FAAct of 1973 substituted the words to this point, beginning with 
"and of the principal amount" in lieu of "(excluding credits covered by guaranties issued 
pursuant to section 24(b) and of the face amount of guaranties issued pursuant to sections 
24 (a) and (b) shall not exceed $550,000,000 for the fiscal year 1972, or which amount not 
less than $300,000,000 shall be available to Israel only". 

FA Appropriation Act, 1975 : $300,000,000 : Provided, That of the amount provided for 
the total aggregate credit sale ceiling during the current fiscal year, not less than 
$300,000,000 shall be allocated to Israel." 

2sThis sentence was added by Sec. 45(a)(7)(B) of the FAAct of 1974. 

27 22 use 2772. 



262 



Sec. 33.^^ Regional Ceilings on Foreign Military Sales.— (a) 29 

^^^The aggregate of the total amount of military assistance pur- 
suant to the Foreign Assistance Act of 1961, as amended,^^ of credits, 
or participations in credits, financed pursuant to section 23, of the 
principal amount of loans guaranteed pursuant to section 24(a),'^2 
shall, excluding training, not exceed $40,000,000 in each fiscal year for 
African countries. 

(b) 33 The President may waive the limitations of this section when 
he determines it to be important to the security of the United States 
and promptly so reports to the Speaker of the House of Kepresenta- 
tives and the Committee on Foreign Relations of the Senate. 

(c) 34 * * * [Repealed— 19731 

Sec. 34.35 Foreign Military Sales Credit Standards.— The Presi- 
dent shall establish standards and criteria for credit and guaranty 
ti-ansactions under section 23 and 24 in accordance with the foreign, 
national security, and financial policies of the United States. 

Sec. 35.3^ Foreign Military Sales to Less Developed Countries. — 
(a) ^Yhen the President finds that any economically less developed 
country is diverting development assistance furnished pursuant to the 
Foreign Assistance Act of 1961, as amended,^^ or sales under the Agri- 
cultural Trade Development and Assistance Act of 1954, as amended,^^ 
to military expenditures, or is diverting its own resources to unneces- 
sary m_ilitary expenditures, to a degree which materially inter- 
feres with its development, such country shall be immediately ineligi- 
ble for further sales and guarantees under sections 21, 22, 23, and 24, 
until the President is assured that such diversion will no longer take 
place. 

fb)39 * * * [Repealed— 1974] 

Sec. 36.*° Reports on Commercial and Governmental Military 
Exports. — 

(a)*^ The President shall submit to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate quarterly reports containing — 

(1) a listing of all letters of offer to sell any defense articles or 
services under this Act, if such offer has not been accepted or 
canceled ; 



28 22 use 2773. 

2» Sec. 45(a)(8)(A) of the FAAct of 1974 repealed former subsection (a) which read 
as follows: "(a) The aggregate of the total amount of military assistance pursuant to 
the Foreign Assistance Act of 1961. as amended, of credits, or participations In credits, 
financed pursuant to section 23 of the principal amount of loans guaranteed pursuant to 
section 24 fa), and of loans and sales in accordance with section 7307 of title 10, United 
States Code, shall, excluding training, not exceed $150,000,000 in each fiscal year for 
Latin American countries." 

80 Sec. 45(a) (8) (B) of the FAAct of 1974 redesignated subsection (b) as subsection (a). 

31 The words "of cafh sales pursuant to sections 21 and 22," which appeared at this 
point, were struck out by Sec. 25(8) (A) of the FAAct of 1973. 

S2 The words "of the principal amount of loans guaranteed pursuant to section 24(a)" 
were substituted in lieu of "(excluding credits covered by guaranties issued pursuant to 
section 24(b)) of the face amount of contracts of guaranty issued pursuant to sections 
24Ca^ and (b)" by Sec. 25(8) (R) of the FAAct of 1973. 

a'Xew subsection (b) was added by Sec. 45(a)(8)(C) of the FAAct of 1974. 

Subsection (c) which related to non-waiver of limitations of the section was re- 
pealed by Sec. 25(9) of the FAAct of 1973. 

3= 22 use 2774. 

a»22 use 2775. 
For text, see page 5. 
For text, see page 284. 

Subseclion (b) was repealed by See. 45(a)(5) of the FAAct of 1974. 
^22 use 2770. 

"Subsections (a) and (b) were added by Sec. 45(a) (u) of the FAAct of 1974. 



263 



(2) a cumulative listing of all such letters of offer to sell that 
have been accepted during the fiscal year in which such report is 
submitted ; 

(3) the cumulative dollar amounts, by foreign country and 
international organization, of credit sales under section 23 and 
guaranty agreements under section 24 made before the submission 
of such quarterly report and during the fiscal year in which such 
report is submitted ; and 

(4) projections of the cumulative dollar amounts, by foreign 
country and international organization, of credit sales under sec- 
tion 23 and guaranty agreements under section 24 to be made in 
the quarter of the fiscal year immediately following the quarter 
for which such report is submitted. 

For each letter of offer to sell under paragi-aphs (1) and (2), the 
report shall specify (A) the foreign country or international orga- 
nization to which the defense article or service is offered, (B) the dol- 
lar amount of the offer to sell under paragraph (1) or of the completed 
sale under paragraph (2), (C) a brief description of the defense arti- 
cle or service offered, (D) the United States armed force which is 
making the offer to sell, (E) the date of such offer, and (F) the date 
of any acceptance under paragraph (2) . 

(b) ^^ In the case of any letter of offer to sell any defense articles or 
services under this Act for $25,000,000 or more, before issuing such 
letter of offer the President shall submit to the Speaker of the House 
of Kepresentatives and to the Chairman of the Committee on Foreign 
Relations of the Senate a statement with respect to such offer to sell 
containing the information specified in subparagraphs (A) through 
(E) in subsection (a). The letter of offer shall not be issued if the 
Congress, within twenty calendar days after receiving any such state- 
ment, adopts a concurrent resolution stating in effect that it objects 
to such proposed sale, unless the President in his statement certifies 
that an emergency exists which requires such sale in the national 
security interests of the United States. 

(c) Nothing in this section shall be construed as modifying in any 
way the provisions of section 414 of the Mutual Security Act of 1954, 
as amended,*^ relating to munitions control. 

Sec. 37.^^ Fiscal Provisions Relating to Foreign Military Sales 
Credits. — (a) Cash payments received under sections 21 and 22 and 
advances received under section 23 shall be available solely for pay- 
ments to suppliers (including the military departments) and refunds 
to purchasers and shall not be available for financing credits and 
guaranties. 

(b) Amounts received from foreign governments and international 
organizations as repayments for credits extended pursuant to section 
23, amounts received from the disposition of instruments evidencing 
indebtedness under section 24(b) (excluding such portion of the sales 
proceeds as may be required at the time of disposition to be obligated 
as a reserve for payment of claims under guaranties issued pursuant 



For text, siee page 211. 
*»22 use 2777. 



264 



to section 24(b), which sums are made available for such obliga- 
tions),^^ and other collections (including fees and interest) shall be 
transferred to the miscellaneous receipts of the Treasury. 

Chapter 4 — General, Administrative, and Miscellaneous 

Provisions 

Sec. 41.4^ Effective Date.— This Act shall take effect on July 1, 1968. 

Sec. 42.^° General Provisions. — (a) In carrying out this Act, 
special em.phasis shall be placed on procurement in the United States, 
but, subject to the provisions of subsection (b) of this section, consider- 
ation shall also be given to coproduction or licensed production out- 
side the United States of defense articles of United States origin when 
such production best serves the foreign policy, national security, and 
economy of the United States. In evaluating any sale proposed to be 
made pursuant to this Act, there shall be taken into consideration (1) 
the extent to which the proposed sale damages or infringes upon licens- 
ing arrangements whereby United States entities have granted licenses 
for the manufacture of the defense articles selected by the purchasing 
country to entities located in friendly foreign countries, which licenses 
result in financial returns to the United States,^^ (2) the portion of 
the defense articles so manufactured which is of United States origin, 
and (3) in coordination with the Director of the United States Arms 
Control and Disarmament Agency, the Director's opinion as to the 
extent to which such sale might contribute to an arms race, or increase 
the possibility of outbreak or escalation of conflict, or prejudice the 
development of bilateral or multilateral arms control arrangements.^^ 
(b) No credit sale shall be extended under section 23, and no guar- 
antee shall be issued under section 24, in any case involving copro- 
duction or licensed,^^ production outside the United States of any de- 
fense article of United States origin unless the Secretary of State shall, 
in advance of any such transaction, advise the appropriate commit- 
tees of the Congress and furnish the Speaker of the House of Repre- 
sentatives and the President of the Senate with full information re- 
garding the proposed transaction, including, but not limited to, a 
description of the particular defense article or articles which would be 
produced under license or coproduced outside the United States, the 
estimated value of such production or coproduction, and the probable 
impact of the proposed transaction on employment and production 
within the United States. 



*t The words to this point, beginning with "under section 24(b) (excluding" were added 
by See. 25(11) of the FAAct of 1973. 
« 22 use 2751 note. 
*8 22 use 2791. 

^■^ The words "but, subject to the provisions of subsection (b) of this section, consid- 
eration shall also be given" were substituted in lieu of "but consideration shall also be 
given" by Sec. 401ff)(D of the FAAct of 1971 (Public Law 92-226). 

Sec. 401(e) of the FAAct of 1971 (Public Law 92-226) struck out the word "and" 
which appeared at this point. 

*9 The words "in coordination with the Director of the United States Arms Control and 
Disarmament Agency, the Director's opinion as to" were inserted by Sec. 150(b) of Public 
Law 04-141. Foreign Relations Authorization Act, Fiscal Year 1976. 

50 The words to this point, beginning with ", and (3) the extent", were added by Sec. 
401 (e) (2) of the FAAct of 1971. 

51 Sec. 401(f)(2) of the FAAct of 1971 added subsection (b) and redesignated former 
subsections (b) and (c) as subsections (c) and (d), respectively. Although the slip law 
contains a comma between "licensed, production" in the first sentence, it is interpreted 
as "licensed production" with no comma. 



265 



(c) ^1 Funds made available under tins Act may be used for procure- 
ment outside the United States only if the President determines that 
such procurement will not result in adverse effects upon the economy 
of the United States or the industrial mobilization base, yrith special 
reference to any areas of labor surplus or to the net position of the 
United States in its balance of payments with the rest of the world, 
which outweigh the economic or other advantages to the United States 
of less costly procurement outside the United States. 

(d) '"^ (1) With respect to sales and guaranties under sections 21, 22, 
23, and 24, the Secretary of Defense shall, under the direction of the 
President, have primary responsibility for — 

(A) the determination of military end-item requirements; 

(B) the procurement of military equipment in a mamier which 
permits its integration with service programs ; 

(C) the supervision of the training of foreign military 
personnel ; 

(D) the movement and delivery of military end-items; and 

(E) within the Department of Defense, the performance of 
any other functions with respect to sales and guaranties. 

(2) The establishment of priorities in the procurement, delivery, 
and allocation of military equipment shall, under the direction of the 
President, be determined by the Secretary of Defense. 

Sec. 43.^^2 Administrative Expenses. — Funds made available under 
other law for the operations of United States Government agencies 
carr^'ing out functions under this Act shall be available for the admin- 
istrative expenses incurred by such agencies under this Act. 

Sec. 44.^'^ Statutory Construction. — Xo provision of this Act shall 
be construed as modifying in any way the provisions of the Atomic 
Energy Act of 1954, as amended, or section 7307 of title 10 of the 
United States Code. 

Sec. 45. Statutes Repealed and Amended. — (a) Sections 521, 522, 
523, 52-4(b) (3), 525, 634(g), and 640 of the Foreign Assistance Act 
of 1961. as amended, are hereby repealed. 

(b) Part III of the Foreign Assistance Act of 1961, as amended, is 
amended as follows : 

(1) Section 622(b) is amended by striking out "or sales". 

(2) Section 622(c) is amended by striking out "and sales" 
and "or sales''. 

(3) Section 632(d) is amended by striking out "sections 506, 
522, and 523,-' in the first sentence and inserting in lieu thereof 
"section 506". 

(4) Section 634(d) is amended by inserting "or any other" 
between "under this" and "Act" in the fourth sentence. 

(5) Section 644 (m) is amended by striking out "and sales" in 
the first sentence of the paragraph following numbered para- 
graph (3). 

(c) References in law to the provisions of law repealed by subsec- 
tion (a) of this section shall hereafter be deemed to be references to 
this Act or appropriate provisions of this Act. Except for the laws 
specified in section 44, no other provision of law shall be deemed to 

°2 22 use 2792. 
"22 use 2793. 



266 



apply to this Act unless it refers specifically to this Act or refers gen- 
erally to sales of defense articles and defense services under any Act. 

Sec. 46.^* Saving Provisions. — Except as may be expressly pro- 
vided to the contrary in this Act, all determinations, authorizations, 
regulations, orders, contracts, agreements, and other actions issued, 
undertaken, or entered into under authority of any provision of law 
repealed by section 45(a) shall continue in full force and effect until 
modified by appropriate authority. 

Sec. 47.^^ Definitions, — For purposes of this Act, the term — 

(1) "excess defense article" has the meaning provided by section 
644(g) of the Foreign Assistance Act of 1961 ; and 

(2) "value" means, in the case of an excess defense article, not less 
than the greater of — 

(A) the gross cost incurred by the United States Government 
in repairing, rehabilitating, or modifying such article, plus the 
scrap value ; or 

(B) the market value, if ascertainable. 



" 22 use 2341 note. 

^22 use 2341 note. Sec. 47 was added by Sec. 25(12) of the FAAct of 1973. 



b. Foreign Military Sales Act Amendments, 1971, as amended 

Partial text of Public Law 91-672 [H.R. 15628], 84 Stat. 2053, approved January 
12, 1971, as amended by Public Law 92-226 [Foreign Assistance Act of 1971; 
S. 2819], 86 Stat. 20, 33 approved February 7, 1972; Public Law 93-189 [Foreign 
Assistance Act of 1973; S. 1443], 87 Stat. 714, 729, approved December 17, 
1973 and Public Law 93-559 [Foreign Assistance Act of 1974; S. 3394], 88 
Stat. 1795, 1799, approved December 31, 1974 



Note. — At publication time of tliis volume, neither the fiscal 
year Appropriations for Development Assistance authorizations 
nor the International Security Assistance legislation had been 
enacted. This printing shows no 1975 amendments to the Foreign 
Military Sales Act. 



AN ACT To amend the Foreign Military Sales Act, and for other purposes. 

Be it enacted hy the SeTiate and House of Representatives of the 
United States of America in Congress assemhled * * * 



Note. — Sections 1-4 of this Act amended the Foreign Military 
Sales Act, Public Law 90-629, October 22, 1968. For text, see 
page 254. 



* ♦ « * * Sic » 

Sec. 5.^ It is the sense of Congress that (1) the President should con- 
tinue to press forward urgently w^ith his efforts to negotiate with the 
Soviet Union and other powers a limitation on arms shipments to the 
Middle East, (2) the President should be supported in his position 
that arms will be made available and credits provided to Israel and 
other friendly states, to the extent that the President determines such 
assistance to be needed in order to meet threats to the security and 
independence of such states, and (3) if the authorization provided in 
the Foreign Military Sales Act, as amended, should prove to be insuf- 
ficient to effectuate this stated policy, the President should promptly 
submit to the Congress requests for an appropriate supplementary 
authorization and appropriation. 

Sec. 6.^ It is the sense of the Congress that — 

(1) the President should immediately institute a thorough and 
comprehensive review of the military aid programs of the United 

1 22 U.S.C. 2751 note. 



(267) 



268 



States, particularly with respect to the military assistance and 
sales operations of the Department of Defense, and 

(2) the President should take such actions as may be appro- 
priate — 

(A) to initiate multilateral discussions among the United 
States, the Union of Soviet Socialist Kepublics, Great Britain, 
France, West Germany, Italy and other countries on the 
control of the worldwide trade in armaments, 

(B) to commence a general debate in the United Nations 
with respect to the control of the conventional arms trade, 
and 

(C) to use the power and prestige of his office to signify 
the intention of the United States to work actively with all 
nations to check and control the international sales and dis- 
tribution of conventional weapons of death and destruction. 

Sec. 7.2 Unless the sale, grant, loan, or transfer of any International 
Fighter aircraft (1) has been authorized by and made in accordance 
with the Foreign Military Sales Act or the Foreign Assistance Act 
of 1961, or (2) is a regular commercial transaction (not financed by 
the United States) between a party other than the United States and 
a foreign country, no such aircraft may be sold, granted, loaned, or 
otherwise transferred to any foreign country (or agency thereof) 
other than South Vietnam. For purposes of this section, "Interna- 
tional Fighter aircraft*' means the fighter aircraft developed pursuant 
to the authority contained in the proviso of the second paragraph of 
section 101 of Public Law 91-121 (relating to military procurement 
for fiscal year 1970 and other matters) 

Sec. 8.* (a) Subject to the provisions of subsection (b), the value of 
any excess defense article granted to a foreign country or international 
organization by any department, agency, or independent establish- 
ment of the United States Government (other than the Agency for In- 
ternational Development) shall be considered to be an expenditure 
made from funds appropriated under the Foreign Assistance Act of 
1961 for military assistance. Unless such department, agency, or estab- 
lishment certifies to the Comptroller General of the United States that 
the excess defense article it is ordering is not to be transferred by any 
means to a foreign country or international organization, when an 
order is placed for a defense article whose stock status is excess at the 
time ordered, a sum equal to the value thereof shall (less amounts to 
be transferred under section 632(d) of the Foreign Assistance Act of 
1961) ^ (1) be reserved and transferred to a suspense account, (2) 
remain in the suspense account until the excess defense article is either 
delivered to a foreign country or international organization or tlie 
order therefor is cancelled, and (3) be transferred from the suspense 

2 22 U.S.C. 2410a. 

^ "Provided, That the funds authorized to be appropriated for the procurement of 
aircraft for the Air Force during fiscal year 1970. not to exceed $28,000,000 shall be 
available to initiate the procurement of a fi.^hter aircraft to meet the needs of Free 
V;or]d forces in Southeast Asia, and to accelerate the withdrawal of United States 
forces from South Vietnam and Thailand; the Air Force shall (1) prior to the obliga- 
tion of any funds appropriated pursuant to this authorization, conduct a competition 
for the aircraft which shall be selected on the basis of the threat as evaluated and 
determined by the Secretary of Defense, and (2) be authorized to use a portion of such 
funds as may be required for research, development, test, and evaluation." 

* 22 U.S.C. 2321b. 

B The parenthetical clause was added by Sec. 26(1) of the FAAct of 1973. 



269 



account to (A) the general fund of the Treasury upon delivery oi such 
article, or (B) to the military assistance appropriation for the current 
fiscal year upon cancellation of the order.*^ Such sum shall be trans- 
ferred to the military assistance appropriation for the current fiscal 
year upon delivery of such article if at the time of delivery the stock 
status of the article is determined, in accordance with section 64^ (g) 
and (m) of the Foreign Assistance Act of 1961, to be nonexcess. 

(b) In the case of excess defense articles which are generated 
abroad, the pro\'isions ^ of subsection (a) shall apply durmg any 
fiscal year only to the extent that the aggregate vahie of excess defense 
articles ordered during that year exceeds $100,000,000.^ 

(c) ^ For purposes of this section, the term ''value" has the same 
meaning as given it in section 644(m) of the Foreign Assistance Act 
of 1961 ; except that for any excess defense article such term shall 
not include a value for any such article which is less than 3314 percent 
of the amoimt the United States paid for such article when the United 
States acquired it.^° 

(d) The President shall promptly and fully inform the Speaker of 
the House of Eepresentatives and the Committee on Foreign Relations 
and the Committee on Appropriations of the Senate of each decision to 
furnish on a grant basis to any country excess defense articles which 
are major weapons systems to*^the extent such major weapons system 
was not included in the presentation material previously submitted to 
the Congress. Additionally, the President shall also submit a ciuarterly 
report to the Congress listing by country the total value of all deliv- 
eries of excess defense articles, disclosing both the aggregate original 
acquisition cost and the aggregate value at the time of delivers'. 

(e) ^^ Expect for excess defense articles granted under part II of 
the Foreign Assistance Act of 1961, the provisions of this section shall 
not apply to any excess defense article granted to South Vietnam 
prior to July 1. 1972. 

Sec. 9.^2 * * * [Repealed-19T3] 



With the exception of the amendment noted in footnote 5, Sec. 402(1) of the FAAct of 
1971 (P.L. 92-2G6) substituted the first and second sentences in lieu of the former first and 
second sentence?, which read as follo-us : "Subject to the provisions of subsection (b). the 
value of any excess defense article granted to a foreign country or international organiza- 
tion under part II of the Foreign Assistance Act of 1961 shall be considered to be an expend- 
iture m.ade from funds appropriated under that Act for military assistance. When an order 
is placed under the military assistance program with the military departments for a defense 
article whose stock status is excess at the time ordered, a sum equal to the value thereof 
(1) be reserved and transferred to a suspense account, (2) remain in the suspense account 
until the excess defense article is either delivered to a foreign country or international 
organisation or the order therefor is cancelled, and (.''>) be transferred from the susp.ense 
account to (A) the general fund of the Treasury upon delivery of such article or (B) to the 
military assistance appropriation for the ciu-rent fiscal year upon cancellation of the order.' 

" TJie words "In the case of excess defense articles which are generated abroad, the 
provisions" were substituted in lieu of "The provisions" by Sec. 26(2) (A) of the FAAct 
of 1973. 

8 Sec. 13(a)(1) of the FAAct of 1974 substituted "$100,000,000" in lieu of "?loO,- 
000.000". 

9 Subsection (c) was amended by Sec 26(3) of the FAAct of 1973. It formerly read as 
follows : "For purposes of this section, 'value' means not less than 33% per centum of 
the amount the United States paid at the time the excess defense articles were acquired 
by the United States." 

10 The words to this point beginning with ": except that for any excess * * *" were 
added by Sec. 13(a)(2) of the FAAct of 1974. 

11 Subsection (e) was added by Sec. 4C2(3) of the FAAct of 1971 (Public Law 92-226). 
^ Sec. 9. which related to any transfer of a defense article to another country, was 

repealed by Sec. 26(4) of the FAAct of 1973. 



270 



Sec. 10-." (a) Notwithstanding any provision of law enacted before 
the date of enactment of this section, no money appropriated for for- 
eign assistance (including foreign military sales) shall be available 
for obligation or expenditure — 

(1) unless the appropriation thereof has been previously au- 
thorized by law ; or 

(2) in excess of an amount previously prescribed by law. 

(b) To the extent that legislation enacted after the raaking of an 
appropriation for foreign assistance (including foreign military 
sales) authorizes the obligation or expenditure thereof, the limitation 
contained in subsection (a) shall have no effect. 

(c) The provisions of this section shall not be superseded except 
by a provision of law enacted after the date of enactment of this 
section which specifically repeals or modifies the provisions of this 
section. 

Sec. 11.^^ For purposes of sections 8 and 9 — 

(1) "defense article" and "excess defense articles" have the 
same meanings as given them in section 644 (d) and (g), respec- 
tively, of the Foreign Assistance Act of 1961; and 

(2) "foreign country" includes any department, agency, or in- 
dependent establislmient of the foreign country. 

Sec. 12. The joint resolution entitled "Joint resolution to promote 
the maintenance of international peace and security in Southeast 
Asia" approved August 10, 1964 (78 Stat. 384; Public Law 88-408), 
is terminated effective upon the day that the second session of the 
Xinety-first Congress is last adjourned. 

Sec. 13.^^ No funds authorized or appropriated pursuant to this or 
any other law may be used to transport chemical munitions from the 
Island of Okinawa to the United States. Such funds as are necessary 
for the detoxification or destruction of the above described chemical 
munitions are hereby authorized and shall be used for the detoxifica- 
tion or destruction of chemical munitions only outside the United 
States. For purposes of this section, the term "United States" means 
the several States and the District of Columbia. 



"22 U.S.C. 2412. 
"22 U.S.C. 2321c 
»50 U.S.C 1512 note. 



c. Executive Order 11501, as amended 



Executive Order 11501, December 22, 1969, 34 F.R. 20169, 3 CFR, 1966-70 Comp. 
p. 884, as amended by Executive Order 11685, September 27, 1972, 37 F.R. 20155 

Admixistratiox of Foreign jNIilitary Saijes 

By virtue of the authority vested in me by section 301 of title 3 of 
the United States Code, and as President of the United States, it is 
ordered as follows : 

Section 1. The following functions conferred upon the President 
by the Foreign ^lilitary Sales Act (P.L. 90-629),^ hereinafter re- 
ferred to as the "Act", are hereby delegat(^d as follows : 

(a) Those under section 3(a) of the Act, with the exception of 
3 ( a ) ( 1 ) , to the Secretary of State. 

(b) Those under section 21 of the Act to the Secretary of Defense. 

(c) Those under section 22 of the Act to the Secretary of Defense. 

(d) That under section 23 of the Act to the Secretary of Defense. 

(e) Those under section 24 of the Act to the Secretary of Defense. 

(f ) Those under section 34 of the Act to the Secretary of State. To 
the extent the standards and criteria for credit and guaranty trans- 
actions are based upon national security and financial policies, the 
Secretary of State shall obtain the prior concurrence of the Secretary 
of Defense and the Secretary of the Treasury, respectively. 

(g) Those under section 35(a) of the Act to the Secretary of State. 

(h) Those under section 35(b) of the Act to the Secretary of 
Defense. 

(i) That under section 42 (c)^ of the Act to the Secretary of 
Defense. 

Sec. 2. Nothing in this order shall be construed as modifying in 
any way the responsibility conferred upon the Secretary of State by 
section 2(b) of the Act for the continuous supervision and general 
direction of sales under the Act. including, but not limited to, deter- 
mining whether a sale should be negotiated, concluded, or terminated 
and the amount thereof. 

Sec. 3. In carrying out the functions delegated to them under this 
order, the Secretaries of State and Defense shall consult with the 
Secretary of the Treasury, the Administrator of the Agency for Inter- 
national Development, and the Director of the Arms Control and 
Disarmament Agency on matters pertaining to their responsibilities. 

Sec. 4. All functions conferred upon the President by the Act that 
are not delegated by the provisions of this order are hereby reserved to 
the President. 



1 For text, see page 254. 

2 Part II of Executive Order 11685 substituted "42(c)" in lieu of •'42(b)." 

(271) 



272 



Sec. 5. Funds appropriated to the President for carrying out the 
Act shall be deemed to be allocated to the Secretary of Defense with- 
out any further action of the President. 

Sec. 6. References in this order to the provisions of the Act shall 
be deemed to include references thereto, respectively, as amended from 
time to time. 

Richard Nixon. 

The White House, 

December 22, 1969. 



6. Armed Forces Authorizations and Appropriations 

a. Department of Defense Appropriation Authorization Act, 

1976 



Partial text of Public Law 94-106 [H.R. 6674], 89 Stat. 531, approved 
October 7, 1975 

AN ACT To authorize appropriations during the fiscal year 1976, and the period 
beginning July 1, 1976, and ending September 30, 1976, for procurement of air- 
craft, missiles, naval vessels, tracked combat vehicles, torpedoes, and other 
weapons, and research, development, test and evaluation for the Armed Forces, 
and to prescribe the authorized personnel strength for each active duty com- 
ponent and of the Selected Reserve of each Reserve component of the Armed 
Forces and of civilian personnel of the Department of Defense, and to au- 
thorize the military training student loads and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 

9|c 4: * 4: >N 

TITLE VIII— GENERAL PROVISIONS 
******* 

Sec. 812. The Secretary of Defense, after consultation with the Sec- 
retary of State, sliall prepare and submit to the Committees on Armed 
Services of the Senate and the House of Representatives a written 
annual report on the foreign policy and military force structure of 
the United States for the next fiscal year, how such policy and force 
structure relate to each other, and the justification for each. Such 
report shall be submitted not later than January 31 of each year. 

Sec. 813. In the case of any letter of offer to sell or any proposal to 
transfer defense articles which are valued at $25,000,000 or more from 
the United States active forces inventories, the Secretary of Defense 
shall submit a report to the Congress setting forth — 

(1) the impact of such sales or transfers on the current readi- 
ness of United States forces ; and 

(2) the adequacy of reimbursements to cover, at the time of 
replenishment to I^itod States' inventories, the full replacement 
costs of those items sold or transferred. 

Sec. 814.^ (a) It is the sense of the Congress that equipment, pro- 



* Subsection (c) amended Sec. 302(c) of Public Law 93-365, seep. 276. 



(273) 



274 



cedures, ammunition, fuel and other military impediments for land, 
air and naval forces of the United States stationed in Europe under 
the terms of the North Atlantic Treaty should be standardized or 
made interoperable with that of other members of the North Atlantic 
Treaty Organization to the maximum extent feasible. In carrying out 
such policy the Secretary of Defense shall, to the maximum feasible 
extent, initiate and carry out procurement procedures that provide 
for the acquisition of equipment which is standardized or interoper- 
able with equipment of other members of the North Atlantic Treaty 
Organization whenever such equipment is designed primarily to be 
used by personnel of the Armed Forces of the United States stationed 
in Europe under the terms of the North Atlantic Treaty. 

(b) The report required under section 302(c) of Public Law 93-365 
shall include a listing of the initiation of procurement action on any 
new major system not in compliance with the policy set forth in 
section (a). 



b. Department of Defense Appropriation Authorization Act, 1975 



Partial text of Public Law 93-365 [H.R. 145921, 88 Stat. 399, approved August 
5, 1974; as amended by Public Law 94-106 [H.R. 6674], 89 Stat. 531 approved 
October 7, 1975 

AN ACT To authorize appropriations during the fiscal year 1975 for procurement 
of aircraft, missiles, naval vessels, tracked combat vehicles, torpedoes, and 
other weapons, and research, development, test and evaluation for the Armed 
Forces, and to prescribe the authorized personnel strength for each active 
duty component and of the Selected Reserve of each Reserve component of 
the Armed Forces and of civilan personnel of the Department of Defense, and 
to authorize the military training student loads and for other purposes 

Be it enacted hy the Semite and Home of Representatdves of the 
United States of America in Congress assembled^ 

***** Hn 

TITLE III— ACTIVE FOKCES 
******* 

Sec. 302 (a) The United States military forces in Europe can 
reduce headquarters and noncombat militaiy personnel relative to the 
number of combat personnel located in Europe. Therefore, except in 
the event of imminent hostilities in Europe, the noncombat component 
of the total United States military strength in Europe authorized as 
of June 30, 1974, shall be reduced by 18.000. Such reduction shall be 
completed not later than June 30. 1976, and not less than 6,000 of such 
reduction shall be completed on or before June 30, 1975 ; however, the 
Secretary of Defense is authorized to increase the combat component 
strength of United States forces in Europe by the amount of any such 
reduction made in noncombat personnel. The Secretary of Defense 
shall report semi-annually to the Congress on all actions taken to 
improve the combat proportion of United States forces in Europe. The 
first report shall be submitted not later than March 31, 1975. 

(b) For purposes of this section, the combat component of the Army 
includes only the infantry, cavalry, artillery, armored, combat engi- 
neers, special forces, attack assault helicopter units, air defense, and 
missile combat units of battalion or smaller size ; the combat compo- 
nent of the Navy includes only the combat ships (aircraft carrier, 
cruiser, destroyer, submarine, escort and amphibious assault ships) 
and combat aircraft wings (fighter, attack, reconnaissance, and 
patrol) ; the combat component of the Air Force includes only the 
tactical fighter reconnaissance, tactical airlift, fighter interceptor and 
bomber units of wing or smaller size. 



(275) 



276 



(c) The Secretary of Defense shall undertake a specific assessment 
of the costs and possible loss of nonnuclear combat effectiveness of the 
military forces of the North Atlantic Treaty Organization countries 
caused by the failure of the North Atlantic Treaty Organization mem- 
bers, including the United States, to standardize weapons systems, 
ammunition, fuel, and other military impedimenta for land, air, and 
naval forces. The Secretary of Defense shall also develop a list of 
standardization actions that could improve the overall North Atlantic 
Treaty Organization nonnuclear defense capability or save resources 
for the alliance as a whole. He shall also evaluate the relative priority 
and effect of each such action. The Secretary shall submit the results of 
these assessments and evaluations to the Congress and subsequently 
shall also cause them to be brought before the appropriate North 
Atlantic Treaty Organization bodies in order that the suggested 
actions and recommendations can become an integral part of the over- 
all North Atlantic Treaty Organization review of force goals and 
development of force plans. The Secretary of Defense shall report 
annually, not later than January 31 of each year, to the Congress on 
the specific assessments and evaluations made under the above pro- 
visions as well as the results achieved with the North Atlantic Treaty 
Organization allies.^ 

(d) The total number of United States tactical nuclear warheads 
located in Europe on the date of enactment of this Act shall not be 
increased until after June 30. 1975. except in the event of imminent 
hostilities in Europe. The Secretary of Defense shall study the overall 
concept for use of tactical nuclear weapons in Europe ; how the use of 
such weapons relates to deterrence and to a strong conventional 
defense ; reductions in the number and type of nuclear warheads which 
are not essential for the defense structure for Western Europe; and 
the steps that can be taken to develop a rational and coordinated 
nuclear posture by the North Atlantic Treaty Orsranization Alliance 
that is consistent with proper emphasis on conventional defense forces. 
The Secretary of Defense shall report to the Committees on Armed 
Services and Foreign Relations of the Senate and the Committees on 
Armed Services and Foreign Affairs of the House of Representatives 
on the results of the above study on or before April 1, 1975. 

TITLE VII— GENERAL PROVISIONS ^ 

* 4s 4i * * * * 

Sec. 704. Section 204 of Public Law 93-166 is amended by adding 
at the end thereof a new subsection as follows : 

"(e) Nothwithstanding any other provision of law, the conduct by 
the Department of the Navy of training operations at the Culebra 
complex involving the firing of any shells, missiles, or other projectiles 

^The last sentence was added by Sec. 814(c) of Public Law 94-106. It replaced lan- 
guaee that provided for semiannual reports to Conjrress. 

2 Sec. 702 amended Public Law S4-1028 [Restrictions on Disposal of Naval Vessels]. 
70A Stat 1 (see p. 281). 



277 



from ships or the dropping of any bombs, strafing, firing of rockets 
or missiles, or the launching of any other projectiles from aircraft at 
Ciilebra or at any keys within three nautical miles thereof is prohibited 
during any period of time that the negotiations required by subsection 
(b) have been ended on the initiative of the United States Govern- 
ment prior to the conclusion of a satisfactory agreement. In the con- 
duct of the negotiations required by subsection (b) the Secretary of 
the Xavy shall not agree to any relocation of training operations from 
the Island of Culebra which would be rendered ineffective by any 
international agreement on the law of the sea which may become 
international law within three years after the date of the enactment 
of this Act." 

:i: ***** * 

Sec. 707. (a) No funds authorized to be appropriated by this or any 
other Act may be obligated under a contract entered into by the 
Department of Defense after the date of the enactment of this Act for 
procurement of goods which are other than American goods unless, 
under regulations of the Secretary of Defense and subject to the 
determinations and exceptions contained in title III of the Act of 
March 3, 1933, as amended (47 Stat. 1520; 41 U.S.C. 10a, 10b), 
popularly known as the Buy American Act, there is adequate con- 
sideration given to — 

(1) the bids or proposals of firms located in labor surplus areas 
in the United States as designated by the Department of Labor 
which have offered to furnish American goods ; 

(2) the bids or proposals of small business firms in the United 
States which have offered to furnish Americans goods; 

(3) the bids or proposals of all other firms in the United States 
which have offered to furnish American goods; 

(4) the United States balance of payments ; 

(5) the cost of shipping goods which are other than American 
goods; and 

(6) any duty, tariff, or surcharge which may enter into the cost 
of using goods which are other than American goods. 

(b) For purposes of this section, the term "goods which are other 
than American goods*' means (1) an end product which has not been 
mined, produced, or manufactured in the United States, or (2) an end 
product manufactured in the United States but the cost of the com- 
ponents thereof which are not mined, produced, or manufactured in 
the United States exceeds the cost of components mined, produced, or 
manufactured in the United States. 

* sj: * * * * * 

Sec. 709.^ (a) The Congress finds that the defense posture of the 
United States may be seriously compromised if goods, technology, and 
industrial techniques which have been developed in whole or in part 
as a direct or indirect result of research and development programs 
or procurement programs financed in whole or in part with funds 



•■' Accordinfr to the General Council's Office. Department of Defense, the Attorney General 
has rnled that section 709 is obsolete and that the operating section regarding technology 
transfer to a controlled country is section 4(h) of the Export Administration Act of 1969. 
(See page 1766). 



278 



authorized by this or any other Act authorizing funds for the Depart- 
ment of Defense are exported to a controlled country without an 
adequate and knowledgeable assessment having been made to deter- 
mine whether the export of such goods, technology, and techniques 
will significantly increase the present or potential military capability 
of any such country. It is the purpose of this section, therefore, to 
provide for such an assessment, to insure notice of proposed exports 
to the Secretary of Defense, and to authorize the Secretary of Defense 
to review the proposed export of goods, technology, or industrial tech- 
niques to any such country whenever he has reason to believe that 
the export of such goods, technology, or techniques will significantly 
increase the military capability of such country. 

(b) Effective upon enactment of this section, any application for 
the export of any goods, technology, or industrial techniques described 
in subsection (a) shall, before being eligible for export to a controlled 
countr}^, be reviewed and assessed by the Secretary of Defense for the 
purpose of determining whether the export of such goods, technology 
or techniques will significantly increase the present or potential mili- 
tary capability of such country. 

(c) If the Secretary of Defense determines, after his review and 
assessment, that the export of such goods, technology or industrial 
techniques will in his judgment significantly increase the present or 
potential military capability of any controlled country, he shall rec- 
ommend to the President that the application for export be disap- 
proved. In any case in which the President disagrees with a recom- 
mendation made by the Secretary of Defense to prohibit the export 
of such goods, technology, or techniques to a controlled country, the 
President shall submit to the Congress a statement indicating his dis- 
agreement with the Secretary of Defense together with the recom- 
mendation of the Secretary of Defense. The application for the export 
of any such goods, technology, or techniques may be approved after 
submission by the President of his statement and the recommendation 
of the Secretary of Defense to the Congress and 60 days of continuous 
session of the Congress has elapsed following such submission unless 
within such 60 day period Congress has adopted a concurrent resolu- 
tion disapproving the application for the export of such goods, tech- 
nology, or techniques. 

(d) As used in this section (1) the term "controlled country" means 
the Soviet Union, Poland, Romania, Hungary, Bulgaria, Czechoslo- 
vakia, the German Democratic Republic (East Germany), and such 
other countries as may be designated by the Secretary of Defense, and 
(2) the term "days of continuous session of the Congress" shall not 
include days on which either House of Congress is not. in session 
because of an adjournment of more than three days. 

(e) The Secretary of Defense shall submit to the Congress a written 
report on his implementation of this section not later than 30 days 
after the close of each quarter of each fiscal year. Each such report 
shall, among other things, identify each instance in which the Secre- 
tary recommended to the President that exports be disapproved and 
the action finally taken by the executive branch on the matter. 



c. Armed Forces Appropriation Authorization, 1971 

Partial text of Public Law 91-441 [H.R. 17123], 84 Stat. 909, approved 
October 7, 1970 

AN ACT To authorize appropriations during the fiscal year 1971 for procure- 
ment of aircraft, missiles, naval vessels, and tracked combat vehicles, and 
other weapons, and research, development, test, and evaluation for the Armed 
Forces, and to authorize real estate acquisition and construction at certain 
installations in connection with the Safeguard antiballistic missile system, 
and to prescribe the authorized personnel strength of the Selected Reserve 
of each Reserve component of the Armed Forces, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 

* 4: * 4: ♦ * 

TITLE V— GENERAL PROVISIONS 

Sec. 501. The Congress views with grave concern the deepening in- 
volvement of the Soviet Union in the Middle East and the clear and 
present danger to world peace resulting from such involvement which 
cannot be ignored by the United States. In order to restore and main- 
tain the military balance in the Middle East, by furnishing to Israel 
for means of providing for its own security, the President is author- 
ized to transfer to Israel, by sale, credit sale, or guaranty, such air- 
craft, and equipment appropriate to use, maintain, and protect such 
aircraft, as may be necessary to counteract any past, present, or future 
increased military assistance provided to other countries of the Middle 
East. Any such sale, credit sale, or guaranty shall be made on terms 
and conditions not less favorable than those extended to other coun- 
tries which receive the same or similar types of aircraft and equip- 
ment. The authority contained in the second sentence of this section 
shall expire September 30, 1972. [Date extended ; see note below.] 
******* 



Note.— Sec. 815 of Public Law 9-1-106 [H.R. 6674], 89 Stat. 
540, approved October 7, 1975, provides : "Notwithstanding any 
other provision of law, the authority provided in section 501 of 
Public Law 91-141, 84 Stat. 909, is hereby extended to June 30, 
1977 ; but no transfer of aircraft or other equipment may be made 
under the authority of such section 501 unless funds have been 
previously appropriated for such transfer." 



(279) 



d. Military Construction Appropriation Act, 1976 

Partial text of Public Law 94-138 [H.R. 10029], 89 Stat. 745, approved 
November 28, 1975 

AN ACT Making appropriations for military construction for the Department 
of Defense for the fiscal year ending June 30, 1976, and the period ending 
September 30, 1976, and for other purposes. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress asserrMed^ That the following 
sums are appropriated, out of any money in the Treasury not other- 
wise appropriated, for the fiscal year ending June 30, 1976, and the 
period ending September 30, 1976, for military construction functions 
administered by the Department of Defense, and for other purposes, 
namely : 

^ id iSL in ^ 

General Provisions 

H< « He H: * H: 

Sec. 109. None of the funds appropriated in this Act may be used 
to make payments under contracts for any project in a foreign country 
unless the Secretary of Defense or his designee, after consultation with 
the Secretary of the Treasury or his designee, certifies to the Congress 
that the use, by purchase from the Treasury, of currencies of such 
country acquired pursuant to laAv is not feasible for the purpose, 
stating the reason therefor. 

4: H: H: ^ 4: 

Sec. 112. None of the funds appropriated in this Act may be used 
prior to April 15, 1976, for the purpose of carrying out any military 
construction project on the island of Diego Garcia; except that 
$250,000 may be used to procure, construct and install aircraft arrest- 
ing gear on the island of Diego Garcia. 

* if: * * ♦ * 9ic 



(280) 



7. Laws Relating to Loan or Sale of Vessels to Foreign Countries 



Partial text of Public Law 84-1028 [H.R. 7049], 70A Stat. 1, approved August 10, 
1956; as amended by Public Law 93-365 [H.R. 14592], 88 Stat. 399, approved 
August 5, 1974 

* 5ft * * * * * 

Chapter 633.— Naval Vessels 

^ * * mi * * * 

Sec. 7307. Restriction on disposal — 

(a) Notwithstanding any other provision of law, no battleship, 
aircraft carrier, cruiser, destroyer, or submarine of the Navy may be 
sold, transferred, or otherwise disposed of, unless the Chief of Naval 
Operations certifies that it is not essential to the defense of the United 
States. 

(b) i(l) After the date of enactment of this paragraph, no naval 
vessel in excess of 2,000 tons or less than 20 years of age may be sold, 
leased, granted, loaned, bartered, transferred, or otherwise disposed 
of to another nation unless the disposition thereof has been approved 
by law enacted after such date of enactment. 

(2) After the date of enactment of this paragraph, any naval vessel 
not subject to the provisions of paragraph (1) may be sold, leased, 
granted, loaned, bartered, transferred, or otherwise disposed of to 
another nation in accordance with applicable provisions of law only 
after the Secretary of the Navy, or his designee, has notified the Com- 
niittees on Armed Services of the Senate and the House of Representa- 
tives in writing of the proposed disposition and 30 days of continuous 
session of Congress have expired following the date on which notice 
was transmitted to such committees. For purposes of this paragraph, 
the continuity of a session of Congress is broken only by an adjourn- 
ment of the Congress sine die, and the days on which either House is 
not in session because of an adjournment of more than 3 days to a day 
certain are excluded in the computation of such 30-day period. 
******* 



1 Subsection (b). amended by Sec. 702 of Public Law &3-365, 88 Stat 399 at 406, 
formerly read as follows : 

"(b) Without authority from Congress granted after March 10, 1951, no battleship, air- 
craft carrier, cruiser, destroyer, or submarine that has not been stricken from the Naval 
Vessel Register under section 7304 of this title, nor any interest of the United States 
in such a vessel, may be sold, transferred, or otherwise disposed of under any law." 

(281) 



282 



Executed Public Laws 

a. Netherlands— Public Law 82-510 [S. 3337], 66 Stat. 587, 

approved July 11, 1952. 

b. Italy and France; Far Eastern and European Nations — 

Public Law 83-188 [S. 2277], 67 Stat. 363, approved Au- 
gust 5, 1953, as amended by Public Law 84-948 [H.K. 
11613], 70 Stat. 967, approved August 3, 1956. 

c. Turkey— Public Law 83-214 [S. 2539], 67 Stat. 471, approved 

August 7, 1953. 

d. Brazil— Public Law 84-484 [H.K. 8100], 70 Stat. 105, ap- 

proved April 6, 1956. 

e. Netherlands and Venezuela— Public Law 85-220 [H.E. 6952], 

71 Stat. 495, approved August 29, 1957. 

f . NATO and the European Area ; the Latin American and Far 

Eastern Areas— Public Law 85-532 [S. 3506], 72 Stat. 376; 
50 U.S.C. App. 1878e-1878i, approved July 18, 1958. 

g. Italy, Turkey, and the Republic of China— Public Law 86-57 

[H.R. 3366], 73 Stat. 90; 50 U.S.C. App. 1878j-1878Z, ap- 
proved June 23, 1959. 

h. Republic of China— Public Law 86-482 [H.R. 9465], 74 Stat. 

153; 50 U.S.C. App. 1878m-1878p, approved June 1, 1960. 

i. Portugal, Spain, NATO, Southern Asia, and the Far Eastern 

Area— Public Law 87-387 [H.R. 7726], 75 Stat. 815; 50 

U.S.C. App. 1878q-1878x, approved October 4, 1961. 
j. Argentina, Brazil, China, Germany, Greece, Italy, Japan, the 

Netherlands, Peru, Spain, Thailand, and Turkey — Public 

Law 88-437 [H.K 11035], 78 Stat. 444; 50 U.S.C. App. 

1878y-1878bb, approved August 14, 1964. 
k. Italy, Spain, Argentina, Brazil, Turkey, and the Philippines — 

Public Law 89-324 [H.R. 7812], 79 Stat. 1214; 50 U.S.C. 

App. 1878cc-1878mm, approved November 5, 1965. 
1. Republic of China— Public Law 89-398 [H.R. 7813], 80 Stat. 

121 ; 50 U.S.C. App. 1878nn-1878ss, approved April 16, 1966. 
m.2 Argentina, Brazil, Chile, Colombia, Federal Republic of 

Germany, Greece, Republic of Korea, Portugal, Spain, and 

Peru— Public Law 90-224 [H.R. 6167], 81 Stat. 729; 50 

U.S.C. App. 1878tt-1878xx, approved December 26, 1967. 
n.2 Greece, Pakistan, Republic of Vietnam, and Turkey — Public 

Law 91-682 [H.R. 15728], 84 Stat. 2066; 50 U.S.C. App. 

1878yy-1878zz-3, approved January 12, 1971. 
o. Spain, Turkey, Greece, Republic of Korea, and Italy — Public 

Law 92-270 [H.R. 9526], 86 Stat. 118: 50 U.S.C. App. 

1878zz-4-1878zz-8, approved April 6, 1972. 



2 AUhough the authority of the President under Item "m" above terminated December 31, 
1909, and under item "n" terminated December 31, 1971, section 3 of each law provides as 
follows : 

"Sec. 3. All new loans and loan extensions executed under this Act shall be for periods 
not exceeding five years, but the President may in his discretion extend such loans for an 
additional period of not more than five years." 



I 



B. AGRICULTURAL COMMODITIES 

CONTENTS 

Page 



1. Agricultural Trade Development and Assistance 285 

a. Agricultural Trade Development and Assistance Act of 1954, 

as amended (Public Law 480) 285 

b. Extension of Agricultural Trade Development and Assistance 

Act of 1954, as amended (partial text) 310 

c. Agricultural Trade Development and Assistance Act Appro- 

priations, 1975 (Public Law 93-563) (partial text) 312 

d. Agriculture and Related Agenc'it\s Appropriation Act. 1976 (Pub- 

lic Law 94-122) (partial text, Title IV — International Pro- 
grams) 313 

e. Executive Order 10900, as amended (Administration of the 

Agricultural Trade Development and Assistance Act of 1954, 

as amended) 315 

2. Food for Peace Program 320 

a. Food for Peace Act of 1966 (Public Law 89-808) (partial text).. 320 

b. Memorandum by the President Describing the Role of the Di- 

rector, Food for Peace Program 321 

c. Executive Order 11252 (Food for Peace Program) 324 



(283) 



1. Agricultural Trade Development and Assistance 

a. Agricultural Trade Development and Assistance Act of 1954, 
as amended (Public Law 480) 



CONTENTS 

Page 

Section 2 — Statement of policy 285 

Section 3— World Food Conference Target 286 

Title I 286 

Section 101 — General authority to enter into agreements for sale of 

commodities 286 

Section 102 — Commodity Credit Corporation authority 286 

Section 103 — Requirements and criteria for assistance 287 

Section 104 — Authority to enter into agreements to use foreign cur- 
rencies for certain purposes 290 

Section 105 — Foreign currencies deposit 295 

Section 106 — Dollar credit sales 296 

Section 107 — Sale of agricultural commodities through private trade.- 297 

Section 108 — Financing ocean transportation costs 298 

Section 109— Conditions of eUgibihty: self-help 298 

Section 110 — Limitation of transactions 299 

Section 111 — Assistance to most seriously affected countries 300 

Title II 300 

Section 201 — General authority for famine and other urgent or ex- 
traordinary relief requirements 300 

Section 202 — Means of furnishing commodities 301 

Section 203 — Commodity Credit Corporation authority 301 

Section 204 — Limitation on programs of assistance and use of foreign 

currencies 301 

Section 205— Expansion of international food and agricultural assist- 
ance programs 302 

Section 206 — Limitation on use of foreign currencies 302 

Title III 302 

Section 301— [Superseded] 302 

Section 302— [Superseded] 302 

Section 303 — Authority to barter or exchange agricultural com- 
modities 303 

Title IV 304 

Section 401 — Requirements and criteria for assistance 304 

Section 402^" Agricultural commodity" defined 304 

Section 403 — Appropriation authorization 304 

Section 404 — Goals of assistance programs 305 

Section 405 — Manner of utilizing authority and funds 305 

Section 406 — Secretary of Agriculture authority to further assist 

developing countries to become self-sufficient 305 

Section 407 — Establishment of advisory committee 306 

Section 408 — Annual report by President to Congress 307 

Section 409 — Period within which title I or title II agreements may 

be entered 307 

Section 410 — Provisions of Sec. 620(e) of the Foreign Assistance Act 
of 1961 (nationalization, expropriation, and related Acts affecting 
property owned by U.S. citizens) applicable to assistance under 

title I 307 

Section 411 — Prohibition of unauthorized assistance to North 

Vietnam 307 

Section 412 — International Food Reserve System 307 

(285) 



a. Agricultural Trade Development and Assistance Act of 1954, 
as amended (Public Law 480) ^ ^ 



Public Law 83-480 [S. 2475], 68 Stat. 454; 7 U.S.C. 1701-1736d, approved July 
10, 1954, as amended by Public Law 84-25 [S. 752], 69 Stat. 44, approved April 25, 
1955; Public Law 84-387 [S. 2253], 69 Stat. 721, approved August 12, 1955; Public 
Law 84-540 [H.R. 10875], 70 Stat. 188, approved May 28, 1956; Public Law 84-726 
[H.R. 11356], 70 Stat. 555, approved July 18, 1956; Public Law 84-962 [S. 3903], 
70 Stat. 988, approved August 3, 1956; Public Law 85-128 [S. 1314], 71 Stat. 345, 
approved August 13, 1957; Public Law 85-141 [S. 2130], 71 Stat. 355, approved 
August 14, 1957; Public Law 85-477 [H.R. 12181], 72 Stat. 261, approved June 30, 
1958; Public Law 85-931 [S. 3420], 72 Stat. 1790, approved September 6, 1958; 
Public Law 86-108 [H.R. 7500], 73 Stat. 246, approved July 24, 1959; Public Law 
86-341 [H.R. 8609], 733 Stat. 606, approved September 21, 1959; Public Law 86- 
472 [HR. 11510], 74 Stat. 134, approved May 14, 1960; Public Law 87-28 [S. 1027], 
75 Stat. 64, approved May 4, 1961; Public Law 87-128 [S. 1643], 75 Stat. 294, ap- 
proved August 8, 1961; Public Law 87-195 [S. 1983], 75 Stat. 424, approved 
September 4, 1961; Public Law 87-703 [H.R. 12391], 76 Stat. 605, approved 
September 27, 1962; Public Law 87-839 [S. 3389], 76 Stat. 1074, approved 
October 18, 1962; Public Law 88-205 [H.R. 7885], 77 Stat. 379, approved Decem- 
ber 16, 1963; Public Law 88-638 [S. 2687], 78 Stat. 1035, approved October 8, 
1964; Public Law 89-106 [H.R. 5598], 79 Stat. 431, approved August 4, 1965; 
Public Law 89-171 [H.R. 7750], 79 Stat. 653, approved September 6, 1965; Public 
Law 89-808 [H.R, 14929], 80 Stat. 1526, approved November 11, 1966; Public Law 
90-436 [S. 2986], 82 Stat. 450, approved July 29, 1968; Public Law 91-524 [H.R. 
18546], 84 Stat. 1358, approved November 30, 1970; Public Law 92-42 [H.R. 
1161], 85 Stat. 99, approved July 1, 1971; Public Law 93-86 [S. 1888], 87 Stat. 
237, approved August 10, 1973; and by Public Law 94-161 [H.R. 9005J, 89 Stat. 
849, approved December 20, 1975. 

AX ACT to increase the consumption of United States agricultural commodities 
in foreign countries, to improve the foreign relations of the United States, and 
for other purpose*. 

Be it enacted hy the Senate and House of Representatives of the 
United States of Ame?v'ra in Congress assembled. That this Act may 
be cited as tlie "Agricultural Trade Development and Assistance Act 
of 1954.-' 

Sec. 2.2 The Congress hereby declares it to be the policy of the 
United States to expand international trade; to develop and expand 
export markets for United States aofricnltiiral commodities: to use 



1 The Afrriciiltural Trade Development and Assistance Act of 1954. as amended, was 
substantially chanjred and amended by Section 2 of the Food for Peace Act of 1966. except 
for Section 301 and 80.''.. which were retained without alteration. For the remainder of 
the text of the Food for Peace Act of 1966. see page 319. 

The Food for Peace Act of 1966 was effective as of January 1, 1967. except that section 
4 took effect November 11. 1966. 

2 Prohibitions affainst furnishing: assistance under this Act are contained in section 481. 
and subsections fi). (n). (s)^ (\) and (w) of section 620 of the Foreign Assistance 
Act of 1961. as amended. See pajres 6S. 100. 101. 102. 10.3. and 104. A further prohibition is 
contained in the Agriculture Fnvironment'^l and Consumer Protection Appropriation Act. 
1975. December 31. 1974. Public Law 93-563. 88 Stat. 1S30. 

3 As amended and restated by sec. 2(A) of Public Law 89-808 (80 Stat. 1526: 7 U.S.C. 
1691). to include the use of abundant agricultural productivity of the U.S. to combat 
hunger and malnutrition. 

[Note. — In signing the Food for Peace bill on November 11, 1966, the President referred 
to it as the "Food for Freedom program".] 



(286) 



287 



the abundant acfi^icultural productivity of the United States to combat 
hunger and mahiutrition and to encourage economic development in 
the developing countries, Avith particular empliasis on assista;ice to 
those countries that are determined to improve their own agricultural 
production; and to promote in other ways the foreign policy of the 
United States. In furnishing food aid under this Act, the President 
shall— 

(1) give priority consideration, in helping to meet urgent food needs 
abroad, to making available the maximum feasible volume of food 
commodities (with appropriate regard to domestic price and supply 
situations) required by those countries most seriously affected by food 
shortages and by inabilit}- to meet immediate food requirements on a 
normal commercial basis ; 

(2) continue to urge all traditional and potential now donors of 
food, fertilizer, or the means of financing these commodities to in- 
crease their participation in efforts to address the emergency and 
longer term food needs of the developing world : 

(3) relate United States assistance to efforts by aid-receiving coun- 
tries to increase their own acfricultural ]~)roduction, with emphasis on 
development of small, family farm agriculture, and improve their 
facilities for transportation, storage, and distribution of food 
commodities; 

(4) give special consideration to the potential for expanding mar- 
kets for America's agricultural abundance abroad in the allocation of 
commodities or concessional financing; and 

(5) give appropriate recognition to and support of a strong and 
viable American farm economy in providing for the food security of 
consumers in the United States and throughout the world.^ 

Sec. 3.'^ Pursuant to the World Food Conference recommendation 
that donor countries provide a total of at least ten million tons of 
food assistance to needy nations annually, the President is urged to 
maintain a significant United States contribution to this goal and 
to encourage other countries to maintain and increase their contribu- 
tions as well. 

TITLE I 

Sec. 101.^ In order to carry out the policies and accomplish the 
objectives set forth in section 2 of this Act, the President is authorized 
to negotiate and carry out agreements with friendly countries to pro- 
vide for the sale of agricultural commodities for dollars on credit 
terms or for foreign currencies. 

Sec. 102." For the purpose of carrying out agreements concluded 
under this Act the Commodity Credit Corporation is authorized to 

*The sentence commencinpr with "In fnrnishincr food aid * * *" was added bv Sec. 201 
of the International Development & Food Assistance Act of 1975, Public Law 94-161 (89 
Stat. 8o0). 

57 U.S.C. 1691a. Sec. 3 was added bv Sec. 202 of Public Law 94-161 (89 Stat. 851). 

«As amended and restated at Public"Law 85-931 (72 Stnt. 1790: Public Law 87-128 
(75 Stat. 306) ; Public Law 88-205 (77 Stat. 390) : Public Law 88-638 (78 Stat. 1035) : 
further amended and restated at Public Law 89-808 (80 Stat. 1526; 7 U.S.C. 1701). See 
Section 55 of the Foreijrn Assistance Act of 1974. December 30. 1974. Public Lnw 93-559. 
88 Stat. 1795. p. 160. for actions to be taken as regards countries designated as "most 
seriously affected" by the current economic crisis. 

^As amended at Public Law 84-25 (69 Stat. 44) : Public Law 88-638 (78 Stat. 1035) ; 
further amended and restated at Public Law 89-808 (80 Stat. 1526) ; further amended at 
Public Law 90-436 (82 Stat. 450). 



65-998 O - 76 - 20 



288 



finance the sale and exportation of agricultural commodities whether 
from private stocks or from stocks of the Commodity Credit Corpora- 
tion: Provided^ That the Commodity Credit Corporation shall not 
finance the sale and export of agricultural commodities under this Act 
for any exporter which is engaging in, or in the six months immedi- 
ately preceding the application for such financing has engaged in, any 
sales, trade, or commerce with North Vietnam, or with any resident 
thereof, or which owns or controls any company which is engaging in, 
or in such period has engaged in, any such sales, trade, or commerce, 
or which is owned or controlled by any company or person which is 
engaging in, or which in such period has engaged in, any such sales, 
trade, or commerce either directly or through any branch, subsidiary, 
affiliate, or associated company : Provided further^ That such appli- 
cation for financing must be accompanied by a statement in which are 
listed by name, address, and chief executive officers all branches, affili- 
ates, subsidiaries and associated companies, foreign and domestic, in 
which the applicant has a controlling interest and similar information 
for all companies which either directly or through subsidiaries or 
otherwise have a controlling interest in the applicant company.^ 

Sec. 103.^ In exercising the authorities conferred upon him by this 
title, the President shall — 

(a) ^° take into account efforts of friendly countries to help 
themselves toward a greater degree of self-reliance, including 
efforts to increase their own agricultural production, especially 
through small, family farm agriculture, to improve their facili- 
ties for transportation, storage, and distribution of food com- 
modities, and to reduce their rate of population growth ; 

(b) take steps to assure a progressive transition from sales for 
foreign currencies to sales for dollars (or to the extent that tran- 
sition to sales for dollars under the terms applicable to such sales 
is not possible, transition to sales for foreign currencies on credit 
terms no less favorable to the United States than those for devel- 
opment loans made under section 201 of the Foreign Assistance 
Act of 1961, as amended,^ ^ and on terms which permit conversion 
to dollars at the exchange rate applicable to the sales agree- 
ment) at a rate whereby the transition can be completed by 
December 31, 1971 : Provided, That, except where he determines 
that it would be inconsistent with the objectives of the Act, the 
President shall determine the amount of foreign currencies needed 
for the uses specified in subsections (a), (b), (c), (e), and (h) 
of section 104 and in section 106(b) (2),^^ ^nd the agreements for 

8The two provisos were added by sec. 9 of Public Law 90-436 |( 82 Stat. 451). 

8 As amended by Public Law 84-387 (69 Stat. 721) ; Public Law 84-540 (70 Stat. 201) ; 
Public Law 84-962 (70 Stat. 988) ; Public Law 85-128 (71 Stat. 345) ; Public Law 85-931 
(72 Stat. 1790) : Public Law 86-'341 (73 Stat. 606) : Public Law 87-28 (75 Stat. 64) ; 
Public Law 85-128 (75 Stat. 306) ; Public Law 88-638 (78 Stat. 1035) : further amended 
and restated by Public Law 89-808 (80 Stat. 1526) ; further amended at Public Law 90-436 
(82 Stat. 450; 7 TI.S.C. 1703). 

10 Subsection (a) was amended by Sec. 203. of Public Law 94-161 (89 Stat. 851). It 
formerly read : "take into account efforts of friendly countries to help themselves toward 
a greater degree of self-reliance, including efforts to meet their problems of food produc- 
tion and population growth" ; 

11 For text, see page 22. 

12 The words "and in section 106(b)(2)" were added by Sec. 203 of Public Law 94-161 
(89 Stat. 851).. 



289 



such credit sales shall provide for payment of such amounts in 
dollars or in foreign currencies upon delivery of the agricultural 
commodities. Such payment may be considered as an advance pay- 
ment of the earliest installments; 

(c) take reasonable precautions to safeguard usual marketings 
of the United States and to assure that sales under this title will 
not unduly disrupt world prices of agricultural commodities or 
normal patterns of commercial trade with friendly countries; 

(d) makes sales agreements only with those countries which he 
determines to be friendly to the United States : Provided^ That the 
President shall periodically review the status of those countries 
which are eligible under this subsection and report the results of 
such review to the Congress. As used in this Act. ''friendly coun- 
try" shall not include (1) any country or area dominated or con- 
trolled by a foreign government or organization controlling a 
world Communist movement, or (2) for the purpose only of sales 
of agricultural commodities for foreign currencies under title I of 
this Act, any country or area dominated by a Communist govern- 
ment, or (3) for the purpose only of sales of agricultural com- 
modities under title I of this Act. any nation which sells or 
furnishes or permits ships or aircraft under its registry to trans- 
port to or from Cuba or North Vietnam (excluding United 
States installations in Cuba) any equipment, materials, or com- 
modities so long as they are governed by a Communist regime : 
Provkledy' That this exclusion from the definHion of ''friendly 
country" may be waived by the President if he determines that 
such waiver is in the national interest and reports such deter- 
mination to the Congress within 10 days of the date of such 
determination, or (4) for the purposes only of sales under title 
I of this Act the United Arab Republic, unless the President de- 
termines that such sale is in the ]iationa] interest of the Ignited 
States. No sales to the United Arab Republic shall be based upon 
the requirements of that nation for more than one fiscal year. 
The President shall keep the President of the Senate and the 
Speaker of the House of Representatives fully and currently in- 
formed with respect to sales made to the Ignited Arab Republic 
under title I of this Act. Notwithstanding any other Act. the 
President mav enter into agreements for the sale of agricultural 
commodities for dollars on credit tei-ms under title I of this Act 



13 Section 4 of Public Law 90-4.36 substituted this proviso in lien of the previous proviso, 
which read as follows : ''Provided, That provision mny be included in any ajrreement for 
payment in foreifm currencies to the extent that the President determines that such 
currencies are needed for the purposes of subsections (a), fb). (c). (e), and fh) of section 

"Public Law 92-73 (85 Stat. 190). provides: "That no funds appropriated by this Act 
shall be used to formulate or administer procrams for the sale of asrricultuml commodities 
pursuant to title I of Public Law .93-4^0 (69 Stat. 454). as amended, to any nation which 
sells or furnishes or which permits shins or aircraft under its resistry to transport to 
North Vietnam any eouipment. materials or commodities, so Ion? as North Vietnam is 
govprned bv a Communist resrime." ^ ^ 

"The second proviso was amended bv Sec. 203(3) of Public Law 94-161 (S9 Stat. 8ol). 
It formerlv read : "Prorided. That with respeet to furnishinc selllnfr. or selling and 
transportinjr to Cuba medical sunplies. non-stratecic raw materials for acricnlture. and 
non-stratesic afrricultural or food commodities, sales agreements may be entered into if 
the Pre'sidpnt finds with respect to each such country, and so informs the Senate and the 
House of Representatives of the reasons therefor, that the making of each such agreement 
would be in the national interest of the Tnited States and all such fundings and reasons 
therefor shall be published in the Federal Register,". 



290 



with countries which fall within the definition of "friendly coun- 
try" for the purpose of such sales and no sales under this Act 
shall be made with any country if the President finds such coun- 
try is (a) an aggressor, in a military sense, against any country 
having diplomatic relations with the United States, or (b) using 
funds, of any sort, from the United States for purposes inimical 
to the foreign policies of the United States ; 

(e) take appropriate steps to assure that private trade channels 
are used to the maximum extent practicable both with respect to 
sales from privately owned stocks and with respect to sales from 
stocks owned by the Commodity Credit Corporation and that 
small business has adequate and fair opportunity to participate 
in sales made under the authority of this Act ; 

(f) give special consideration to the development and expan- 
sion of foreign markets for United States agricultural com- 
modities, with appropriate emphasis on more adequate storage, 
handling, and food distribution facilities as well as long-term 
development of new and expanding markets by encouraging eco- 
nomic growth; 

(g) obtain commitments from purchasing countries that will 
prevent resale or transshipment to other countries, or use for 
other than domestic purposes, of agricultural commodities pur- 
chased under this title, without specific approval of the President ; 

(h) obtain rates of exchange applicable to the sale of com- 
modities under such agreements which are not less favorable than 
the highest of exchange rates legally obtainable in the respective 
countries and which are not less favorable than the highest of ex- 
change rates obtainable by any other nation ; 

(i) promote progress toward assurance of an adequate food 
supply by encouraging countries with which agreements are made 
to give higher emphasis to the production of food crops than to 
the production of such nonfood crops as are in world surplus ; 

(j) exercise the authority contained in title I of this Act to 
assist friendly countries to be independent of domination or con- 
trol by any world Communist movement. Nothing in this Act 
shall be construed as authorizing sales agreements under title I 
with any government or organization controlling a world Com- 
munist movement or with any country with which the United 
States does not have diplomatic relations ; 

(k) whenever practicable require upon delivery that not less 
than 5 per centum of the purchase price of any agricultural com- 
modities sold under title I of this Act be payable in dollars or in 
the types or kinds of currencies which can be converted into 
dollars ; 

(1) obtain commitments from friendly purchasing countries 
that will insure, insofar as practicable, that food commodities sold 
for foreign currencies under title I of this Act shall be marked 
or identified at point of distribution or sale as being provided on 
a concessional basis to the recipient government through the gen- 
erosity of the people of the United States of America, and obtain 
commitments from purchasing countries to publicize widely to 



291 



their people, by public media and other means, that the commodi- 
ties are bein<T provided on a concessional basis through the friend- 
ship of the American people as food for peace ; 

(m) require foreign currencies to be convertible to dollars to the 
extent consistent with the effectuation of the purposes of this Act, 
but in any event to the extent necessary to (1) permit that portion 
of such currencies made available for payment of T^nited States 
obligations to be used to meet obligations or charges payable by 
the United States or any of its agencies to the government of the 
importing country or any of its agencies, and (2) in the case of 
excess currency countries, assure convertibility by sale to Ameri- 
can tourists, or otherwise, of such additional amount (up to 
twenty-five per centum of the foreign currencies received pur- 
suant to each agreement entered into after the effective date of 
the Food for Peace Act of 1966) as may be necessary to cover 
all normal expenditures of American tourists in the importing 
country ; 

(n) take maximum precautions to assure that sales for dollars 
on credit terms under this Act shall not displace any sales of 
United States agricultural commodities which would otherwise 
be made for cash dollars ; 

(o) Take steps to assure that the United States obtains a fair 
share of any increase in commercial purchases of agricultural com- 
modities by the purchasing country and that commercial supplies 
are available to meet demands developed through programs car- 
ried out under this Act ; 

(p) Assure convertibility at such uniformly applied exchange 
rates as shall be agreed upon of up to 50 per centum of the foreign 
currencies received pursuant to each agreement by sale to United 
States or purchasing country contractors for payment of wages 
earned in the development and consummation of works of public 
improvement in the purchasing country; and 

(q) Assure convertibility of up to 50 per centum of the foreign 
currencies received pursuant to each agreement by sale to United 
States importers for the procurement of materials or commodities 
in the purchasing country. 
Sec. 104.1^ Notwithstanding any other provision of law, the Presi- 
dent may use or enter into agreements with foreign countries or inter- 
national organizations to use the foreign currencies, including principal 
and interest ftom loan repayments, which accrue in connection with 
sales for foreign currencies under this title for one or more of the 
following purposes : 

(a) For payment of United States obligations (including ob- 
ligations entered into pursuant to other legislation) ; 



i« Subsections (o), (p) and (q) were added by sec. 5 of Public Law 90-436 (.S2 Stat. 450). 
Subsection (o) was amended by Public Law 9^-S6 (87 Stat. 237) by addinj;: after "coun- 
try" the following : "and that commercial supplies are available to meet demands developed 
through proprrams carried out under this Act." 

"Amended bv Public Law 84-72fi (70 Stat. oG4) : Public Law 84-962 (70 Stat. 988) : 
Public Law 85-128 (71 Stat. 345) : Public Law 85-141 (71 Stat. '365) : Public Law 85-477 
(72 Stat. 275) : Public Law 85-931 (72 Stat. 1790) : Public Law 86-108 (73 Stat. 258) : 
Public Law 86-341 (73 Stat. 607) : Public Law 87-128 (75 Stat. 306) : Public Law 87-195 
(75 Stat. 443) ; Public Law 87-8.39 (76 Stat. 1074) : Public Law 88-205 (77 Stat. 386) : 
Public Law 88-638 (78 Stat. 1035) : Public Law 89-106 (79 Stat. 432) : further amended 
and restated by Public Law 89-808 (80 Stat. 1528) ; further amended by Public Law 
90-436 (82 Stat. 450) ; and Public Law 91-524 (84 Stat. 1379). 



292 



(b) For carrying out programs of United States Government 
agencies to — 

(1) help develop new markets for United States agricul- 
tural commodities on a mutually benefiting basis. From sale 
proceeds and loan repayments under this title not less than the 
equivalent of 5 per centum of the total sales made each year 
under this title shall be set aside in the amounts and kinds of 
foreign currencies specified by the Secretary of Agriculture 
and made available in advance for use as provided by this par- 
agraph over such period of years as the Secretary of Agricul- 
ture determines will most effectively carry out the purpose of 
this paragraph : Provided^ That the Secretary of Agriculture 
may release such amounts of the foreign currencies so set aside 
as he determines cannot be effectively used for agricultural 
market development purposes under this section, except that 
no release shall be made until the expiration of thirty days fol- 
lowing the date on which notice of such proposed release is 
transmitted by the President to the Senate Committee on 
Agriculture and Forestry and the Senate Committee on 
Foreign Relations and to the House Committee on Agri- 
culture and the House Commmittee on International Rela- 
tions,^^ if transmitted while Congress is in session, or sixty 
days following the date of transmittal if transmitted while 
Congress is not in session. Provision shall be made in sale 
and loan agreements for the convertibility of such amount 
of the proceeds thereof (not less than 2 per centum) as the 
Secretary of Agriculture determines to be needed to carry out 
the purpose of this paragraph in those countries which are or 
offer reasonable potential of becoming dollar markets for 
United States agricultural commodities. Such sums shall be 
converted into the types and kinds of foreign currencies as the 
Secretary deems necessary to carry out the provisions of this 
paragraph and such sums shall be deposited to a special Treas- 
ury account and shall not be made available or expended ex- 
cept for carrying out the provisions of this paragraph. Not- 
withstanding any other provision of law, if sufficient foreign 
currencies for carrying out the purpose of this paragraph in 
such countries are not otherwise available, the Secretary of 
Agriculture is authorized and directed to enter into agree- 
ments with such countries for the sale of agricultural com- 
modities in such amounts as the Secretary of Agriculture de- 
termines to be adequate and for the use of the proceeds to 
carry out the purpose of this paragraph. In carrying out 
agricultural market development activities, nonprofit agri- 
cultural trade organizations shall be utilized to the maximum 
extent practicable. The purpose of this paragraph shall in- 
clude such representation of agricultural industries as may 
be required during the course of discussions on trade pro- 
grams relating either to individual commodities or groups of 
commodities ; 



1" The words "and the Senate Committee on Foreign Relations" were added by Sec. 
204(2) of Public Law 94-161 (89 Stat. 852). 

19 The words "and the House Committee on International Relations" were added by 
Sec. 204(1) of Public Law 94-161 (89 Stat. 852). 



293 



(2) 20 finance with not less than 2 per centum of the total 
sales proceeds received each year in each country activities 
to assist international educational and cultural exchange and 
to provide for the strengthening of the resources of American 
schools, colleges, universities, and other public and nonprofit 
private educational agencies for international studies and 
research under the programs authorized by title VI of the 
National Defense Education Act, the Mutual Educational 
and Cultural Exchange Act of 1961, the International Edu- 
cation Act of 1966, the Higher Education Act of 1965, the 
Elementary and Secondary Education Act of 1965, the Na- 
tional Foundation on the Arts and the Humanities Act of 
1965, and the Public Broadcasting Act of 1967; 

(3) collect, collate, translate, abstract and disseminate sci- 
entific and technological information and conduct research 
and support scientific activities overseas including prooframs 
and projects of scientific cooperation between the United 
States and other countries such as coordinated research 
against diseases common to all of mankind or unique to indi- 
vidual regions of the globe, and promote and support pro- 
grams of medical and scientific research, cultural and educa- 
tional development, family planning health, nutrition, and 
sanitation ; 

(4) acquire by purchase, lease, rental, or otherwise, sites 
and buildings and grounds abroad, for United States Govern- 
ment use including offices, residence quarters, community and 
other facilities, and construct, repair, alter, and furnish such 
buildings and facilities : 



20 Subsection (2) was amended by Sec. 3 of Public Law 90-436. It formerly read as 
follows : 

"(2) finance international educational and cultural exchange activities under the 
proj;rams authorized by the Mutual Educational and Cultural Exchange Act of 1961 
(22 U.S.C. 2451 et seq. ) :". 
For text of the Mutual Educational and Cultural Exchange Act of 1961. as amended, 
see page 648. 

21 See also Sec. 5(g) of the International Health Research Act of 1960. Public Law 86- 
610. 74 Stat. 368. approved July 12. 1960 (22 U.S.C. 2103). which authorizes, sub.iect to 
section 1415 of the Supplemental Appropriation Act. 1953. the use of title I foreign cur- 
rencies to advance health science activities. For the text of section 1415. see page 219. 

22 See also section 209(a) of Public Law 87-651, 76 Stat. 523, as amended (10 U.S.C. 
2681), which provides in part as follows: 

"(a) In addition to family housing and to community facilities that otherwise may be 
constructed or acquired by the Department of Defense, the Secretary of Defense may, 
with the approval of the Director of the Bureau of the Budget, construct, or acquire by 
lease or otherwis^e. family housing to be occupied as public quarters, and community 
facilities, in foreign countries by using foreign currencies that have a value of not more 
than $250,000,000 and that were acquired under sections 1691-1724 of title 7 or through 
other commodity transactions of the Commodity Credit Corporation. 

"(b) The Department of Defense shall pay the Commodity Credit Corporation an 
amount not to exceed $6,000,000 a year until the amount due for foreign currencies used 
for housing constructed or acquired under this section has been liquidated." 
Section 420 of the Act of August 10. 1959. 73 Stat. 324, provides as follows : 
"In carrying out in a foreign country any project authorized by this Act or any other 
Military Construction Act heretofore or hereafter enacted, currencies of such country 
acquired nursuant to the provisions of the Agricutural Trade Development and Assistance 
Act of 1954 (Public Law 480. Eighty-third Congress) shall, to the extent availible and 
feasible, be used in lieu of dollars. The Department of Defense shall reimburse the Com- 
moditv Credit Corporation for any foreign currencies so utilized in carrying out such 
proiects." (7 U.S.C. 1704b) 

Section 509 of the Act of June 8, 1960. 74 Stat. 186. provides as follows : 
"Notwithstanding the provisions of any other law. at least 75 per centum of the total 
cost of anv familv housing project or community facility hereafter constructed or acquired 
in anv foreign countrv by the Department of Defense or any military department shall 
be paid for from foreign currencies acquired bv the Commodity Credit Corporation pursuant 
to the provisions of the Agricultural Trade Development and Assistance Act of 19o4 ; 
except that the following projects authorized pursuant to this Act shall not be subject to 
this requirement: * * * (list of projects omitted) (7 U.S.C. 1704b note)." 



294 



' (5) finance under the direction of the Librarian of Con- 
jrress, in consultation with the National Science Foundation 
and other interested aa'encies, (A) programs outside the 
United States for the analysis and evaluation of foreign 
books, periodicals, and other materials to determine whether 
they would provide information of teclinical or scientific sig- 
nificance in the United States and whether such books, peri- 
odicals, and other materials are of cultural or educational 
significance. (B) the registry, indexing, binding, reproduc- 
tion, cataloginof, abstracting, translating, and dissemination 
of books, periodicals, and related materials determined to 
have such significance ; and (C) the acquisition of such books, 
periodicals, and other materials and the deposit thereof in 
libraries and research centers in the United States specializ- 
ing in the areas to Avhich thev relate : 

(c) * * * [Repealed-19T5]^3* 

(d) For assistance to meet emergency or extraordinary relief 
requirements other than requirements for food commodities ; Pro- 
vided^ That not more than a total amount equivalent to $5,000,000 
may be made available for this purpose during any fiscal year; 

(e) For use to the maximum extent under the procedures estab- 
lished by such agency as the Prcvsident shall designate for loans to 
United States business firms (including cooperatives) and 
branches, subsidiaries, or affiliates of such firms for business de- 
velopment and trade expansion in such countries, including loans 
for private home construction, and for loans to domestic or f oreiirn 
firms (including cooperatives) for the establishment of facilities 
for aiding in the utilization, distribution, or otherwise inc^easino^ 
the consumption of, and markets for. United States agricultural 
products: ProvkJed, however. That no such loans shall be made 
for the manufacture of any products intended to be exported to 
the United States in competition with products produced in the 
United States and due consideration shall be given to the con- 
tinued expansion of markets for United States agricultural com- 
modities or the products thereof. Foreign currencies may be ac- 
cepted in repayment of such loans ; 

(f) To promote multilateral trade and ao-ricultural and other 
economic development, under procedures, established by the Presi- 
dent, by loans or by use in any other manner which the President 
may determine to be in the national interest of the United States, 
particularly to assist programs of recipient countries designed to 
promote, increase, or improve food production, processing, distri- 
bution, or marketing in food-deficit countries friendly to the 
Ignited States, for which purpose the President may utilize to 
the exfent practicable the services of nonprofit voluntary airencies 
registered with and approved by the Advisory Committee on 
Voluntary Foreign Aid : Provided, That no such funds may be 
utilized to promote religious activities; 



» Subsection (c) was repealed by Sec. 204(3) of Public Law 94-161 (89 Stat. 852). 



295 



(g) For the purchase of goods or services for other friendly 
countries ; 

(h) For financing, at the request of such country, programs 
emphasizing maternal welfare, child health and nutrition, and 
activities, where participation is voluntary, related to the problems 
of population growth, under procedures established by the Presi- 
dent through any agency of the United States, or through any 
local agency which he determines is qualified to administer such 
activities. Xot less than 5 per centum of the total sales proceeds 
received each year shall, if requested by the foreign country, be 
used for voluntary programs to control population growth ; 

(i) For paying, to the maximum extent practicable, the costs 
outside the United States of carrying out the program authorized 
in section 406 of this Act ; 

(j) For sale for dollars to United States citizens and nonprofit 
organizations for travel or other purposes of currencies deter- 
mined to be in excess of the needs of departments and agencies of 
the United States for such currencies. The United States dollars 
received from the sale of such foreign currencies shall be deposited 
to the account of Commodity Credit Corporation ; and " 

(k)" For paying, to the maximum extent practicable, the costs 
of carrying out programs for the control of rodents, insects, weeds, 
and other animal or plant pests ; 
Provided, That— 

(1) Section 1415 of the Supplemental Appropriation Act, 1953, 
shall apply to currencies used for the purposes specified in subsections 
(a) and (b), and in the case of currencies to be used for the purposes 
specified in paragraph (2) of subsection (b) the Appropriation Act 
may specifically authorize the use of such currencies and shall not 
require the appropriation of dollars for the purchase of such 
currencies.^^ 

(2) Section 1415 of the Supplemental Appropriation Act, 1953, 
shall apply to all foreign currencies used for grants under subsections 
(f) and (g), to not less than 10 per centum of the foreign currencies 
which accrue pursuant to agreements entered into on or before Decem- 
ber 31, 1964, and to not less than 20 per centum in the aggregate of 
the foreign currencies which accrue pursuant to agreements entered 
into thereafter : Provided. hoLoever, That the President is authorized to 
waive such applicability of section 1415 in any case where he deter- 
mines that it would be inappropriate or inconsistent with the purposes 
of this title, 

(3) No agreement or proposal to grant any foreign currencies (ex- 
cept as provided in subsection (c) of this section), or to use (except 
pursuant to a^Dpropriation Act) and princi])al or interest from loan 
repayments under this section shall be entered into or carried out until 
the expiration of thirty days following the date on which such agree- 

2<Tliis sentence was ndded by Sec. 2(a) of Public Law 90-436 (82 Stat. 450). 

25 Section 6 of Public Law 90-436 struck out the word "and" at the end of subsection (1) ; 
Inserted and" In lieu of the colon after subsection (.1). and added subsection (k). 

2« For text of the Supplemental Appropriation Act. 1953. see pa?e 219. The final clause 
of this paragraph was added by Section 702 of the Agricultural Act of 1970 (Public 
Law 91-524, 84 Stat. 1379). 



296 



ment or proposal is transmitted by the President to the Senate Com- 
mittee on Agriculture and Forestry and the Senate Committee on For- 
eign Relations and to the House Committee on Agriculture and the 
House Committee on International Relations,^^ if transmitted while 
Congress is in session, or sixty days folloAving the date of transmittal 
if transmitted while Congress is not in session. 

(4) Any loan made under the authority of this section shall bear 
interest at such rate as the President may determine but not less than 
the cost of funds to the United States Treasury, taking into considera- 
tion the current average market yields on outstanding marketable 
obligations of the United States having maturity comparable to the 
maturity of such loans, unless the President shall in specific instances 
after consultation with the advisory committee established under sec- 
tion 407 designate a different rate : 

Provided^ further^ That paragraphs (2), (3), and (4) of the fore- 
going proviso shall not apply in the case of any nation where the for- 
eign currencies or credits owned by the United States and available 
for use by it in such nation are determined by the Secretary of the 
Treasury to be in excess of the normal requirements of the depart- 
ments and agencies of the United States for expenditures in such 
nations for the fiscal years following the fiscal year in which such 
determination is made. The amount of any such excess shall be de- 
voted to the extent practicable and without regard to paragraph (1) 
of the foregoing proviso, to the acquisition of sites, buildings, and 
grounds under paragraph (4) of subsection (b) of this section and to 
assist such nation in undertakinir self-help measures to increase its pro- 
duction of agricultural commodities and its facilities for storage and 
distribution of such commodities. Assistance under the foregoing 
provision shall be limited to self-help measures additional to those 
which would be undertaken without such assistance. Upon the de- 
termination by the Secretary of the Treasury that such an excess exists 
w^ith respect to any nation, the President shall advise the Senate Com- 
mittee on Agriculture and Forestry and the Senate Committee on 
Foreign Relations ^'^ and the House Committee on Agriculture and the 
House Committee on International Relations of such determination; 
and shall thereafter report to each such Committee as often as may be 
necessary to keep such Committee advised as to the extent of such 
excess, the purposes for which it is used or proposed to be used, and 
the effects of such use. 

Sec. 105.2^ Foreign currencies received pursuant to this Act shall be 
deposited in a special account to the credit of the United States and 
shall be used only pursuant to section 104, and any department or 
agency of the Government using any of such currencies for a purpose 
for which funds have been appropriated shall reimburse the Com- 
modity Credit Corporation in an amount equivalent to the dollar 
value of the currencies used. The President shall utilize foreign cur- 

27 The words "and the Senate Committee on Foreign Relations" were added by Sec. 
204(2) of Public Law 94-161 (89 Stat. 852). 

2« The words "and the House Committee on International Relations" were added by Sec. 
204(1) of Public Law 94-lfil (89 Stat. 852). 

29 As amended at Public Law 88-205 (77 Stat. 390) ; further amended and restated by 
Public Law 89t-808 (80 Stat. 1532; 7 U.S.C. 1706). 



297 



Note. — See Public Law 89-677, use of reserved foreign curren- 
cies, page 204. 

Section 507 of the Public Works for Water, Pollution Control, 
and Power Development and Atomic Encrgv Commission Ap- 
propriation Act, 1970 (Public Law 91-144, 83 Stat. 338), pro- 
vides as follows : 

"Pursuant to section 1415 of the Act of July 15, 1952 (66 Stat. 
662), foreign credits (including currencies) owed to or owned 
by the United States may be used by Federal agencies for any 
purpose for which appropriations are made for the current 
fiscal year (including the carrying out of Acts requiring or 
authorizing the use of such credits), only when reimbursement 
therefor is made to the Treasury from applicable appropria- 
tions of the agency concerned : Provided^ That such credits re- 
ceived as exchange alloAvances or proceeds of sales of personal 
property may be used iu whole or part payment for acquisition 
of similar items, to the extent and in the manner authorized by 
law, without reimbursement to the Treasury." 



rencios received pursuant to this Act in such manner as will, to the 
maximum extent possible, reduce any deficit in the balance of payments 
of the United States. 

Sec. 106.^° (a) Payment by any friendly country for commodities 
purchased for dollars on credit shall be upon terms as favorable to the 
ITnited States as the economy of such country will permit. Payment 
for such commodities shall be in dollars with interest at such rates as 
the Secretary may determine but not less than the minimum rate 
required by section 201 of the Foreign Assistance Act of 1961 for 
loans made under that section. Payment may be made in reasonable 
annual amounts over periods of not to exceed twenty years from the 
date of the last delivery of commodities in each calendar year under 
the agreement, except that the date for beginning such annual pay- 
ment may be deferred for a period not later than two years after 
such date of last delivery, and interest shall be computed from the 
date of such last delivery. Delivery of such commodities shall be 
made in annual installments for not more than ten years following the 
date of the sales agreement and subject to the availability of the com- 
modities at the time delivery is to be made. 

(b) (1) Agreemeiits hereunder for the sale of agricultural com- 
modities for dollars on credit terms shall include provisions to assure 
that the proceeds from the sale of the commodities in the recipient 
country are used for such economic development purposes as are 
agreed upon in the sales agreement or any amendment thereto. In 
negotiating such agreements with recipient countries, the United 
States shall emphasize the use of such proceeds for purposes which 
directly improve the lives of the poorest of their people and their 
capacity to participate in the development of their countries.^^ 

30 As amended bv Public Law 84-387 (69 Stat. 721) ; Public Law 87-128 (75 Stat. 307) ; 
Public Law 88-205 (77 Stat. 390) ; further amended and restated by Public Law 89-808. 

31 For text, see pajre 22. 

32 Paragraph designation '^(1)" was added by Sec. 205(1) of Public Law 94-161 (89 
Stat. 852). 

33 This sentence was added by Sec. 205(2) of Public Law 94-161 (89 Stat. 852). 



298 



(2) Greatest emphasis shall be placed on the use of such proceeds 
to carry out programs of agricultural development, rural develop- 
ment, nutrition, and population planning, and to carry out the pro- 
gram described in section 406(a)(1) of this Act, in those countries 
which are undertaking self-help measures to increase agricultural 
production, improve storage, transportation, and distribution of com- 
modities, and reduce population growth in accordance with section 
109 of this Act, and which programs are directed at and likely to 
achieve the policy objectives of sections 103 and 104 of the Foreign 
Assistance Act of 1961 and are consistent with the policy objectives 
of this Act, pursuant to agreements between the United States and 
foreign governments under which uses of such proceeds shall be made 
for such purposes. Such uses shall be deemed payments for the pur- 
pose of section 103(b) of this Act, except that for any fiscal year 
the total value of such payments may not exceed 15 per centum of 
the total value of all agreements entered into under title I of this 
Act for such fiscal year. Such payments shall be described in the 
reports required by section 408 of this Act and section 657 of the For- 
eign Assistance Act of 1961. 

(3) In entering into agreements for the sale of agricultural com- 
modities for dollars on credit terms under this title, priority shall 
be given to countries which agree to use the proceeds from the sale 
of the commodities in accordance with the country's agricultural 
development plan which — 

(A) is designed to increase the access of the poor in the 
recipient country to an adequate, nutritious, and stable food 
supply; 

(B) provides for such objectives as — 

(i) making farm production equipment and facilities 
available to farmers, 

(ii) credit on reasonable terms and conditions for small 
farmers, and 

(iii) farm extension and technical information services 
designed to improve the marketing, storage, transportation, 
and distribution system for agricultural commodities and to 
develop the physical and institutional infrastructure support- 
ing the small farmer ; 

(C) provides for participation by the poor, insofar as pos- 
sible, in the foregoing at the regional and local levels; and 

(D) is designed to reach the largest practicable number of 
farmers in the recipient country. 

Sec. 107.^'^ (a) It is also the policy of the Congress to stimulate and 
maximize the sale of United States agricultural commodities for dol- 
lars through the private trade and to further the use of private enter- 
prise to the maximum, thereby strengthening the development and 
expansion of foreign commercial markets for United States agricul- 
tural commodities. In furtherance of this policy, the Secretary of 
Agriculture is authorized, notwithstanding any other provision of law, 
to enter into agreements with foreign and United States private trade 



3*Pnragraphs (2) and (3) were added by Sec. 205(3) of Public Law 94-m (89 
Stat. 852). 

35 As amended by Public Law 88-638 (78 Stat. 1036) ; Public Law 89-171 (79 Stat. 
662) ; further amended and restated by Public Law 89-808 (80 Stat. 15'32 ; 7 U.S.C. 1707). 



299 



for financing the sale of agricultural commodities for export over such 
periods of time and on such credit terms as the Secretary determines 
will accomplish the objectives of this section. Any agreement entered 
into under this section shall provide for the development and execution 
of projects which will result in the establishment of facilities designed 
to improve the storage or marketing of agricultural commodities, or 
which will otherwise stimulate and expand private economic enter- 
prise in any friendly country. Any agreement entered into under this 
section shall also provide for the furnishing of such security as the 
Secretary determines necessary to provide reasonable and adequate 
assurance of payment of the purchase price in dollars with interest at 
a rate which will as nearly as practicable be equivalent to the average 
cost of funds to the United States Treasury, as determined by the 
Secretary of the Treasury, on outstrjiding marketable obligations of 
the United States having maturities comparable to maturities of credits 
extended under this section. In no event shall the rate of interest be 
less than the minimum rate, or the delivery period, deferral of first 
payment, or term of credit be longer than the maximum term, author- 
ized in section 106. In carrying out this Act, the authority provided 
in this section for making dollar sales shall be used to the maximum 
extent practicable. 

(b) In carrying out the provisions of this section, the Secretary 
shall take reasonable precautions to safeguard usual marketings of 
the United States and to avoid displacing any sales of the United 
States agricultural commodities which the Secretary finds and deter- 
mines would otherwise be made for cash dollars. 

(c) The Secretary shall obtain commitments from purchasers that 
will prevent resale or transshipment to other countries, or use for 
other than domestic purposes, of agricultural commodities purchased 
under this section. 

(d) In carrving out this Act. the provisions of sections 102. 103 fa), 
103(d), 103(e), 103(f), 103(1), 103 (k), 110, 401, 402. 403, 404, 405, 
407, 408, and 409 shall be applicable to sales under this section. 

Sec. 108.^^ The Commodity Credit Corporation may finance ocean 
freight charges incurred pursuant to agreements for sales for foreio-n 
currencies (other than those providincf for conversion to dollars as de- 
scribed in section 103(b) of this Act) entered into hereunder only to 
the extent that such charges are hiofher (than would otherwise be 
the case) bv reason of a requirement that the commodities be trans- 
ported in United States-flasr vessels. Such agreements shall require 
the balance of such charges for transportation in Ignited States vessels 
to be paid in dollars by the nations or organizations with whom such 
agreements are entered into. 

Sec. 109.^' (a) Before entering into agreements with developing 
countries for the sale of Ignited Spates asrricultural commodities on 
whatever terms, the President shall consider the extent to which the 
recipient country is undertaking wherever practicable self-help meas- 



» As amended at Pnblie Law RR-fi3S f78 Stat 1037) ; further amended and restated by 
Public Law 89-808 (80 Stat. 1533: 7 U.S.C 1708). 

3' As amended bv Public Law R5-128 (71 St^t. 1791) : Public Law 8R-?^41 (73 Stat. 
60f>^ : Public Law 87-128 (75 Stat. 307) : Public Law 88-638 (78 S^-at 1037) : further 
amended and restated bv Public Law 89-808 (80 Stat. 1533; 7 U.S.C. 1709) ; further 
amended at Public Law 90-436 (82 Stat. 450). 



300 



ures to increase per capita production and improve the means for stor- 
age and distribution of agricultural commodities, including : 

(1) devoting land resources to the production of needed food 
rather than to the production of nonfood crops — especially non- 
food crops in world surplus ; 

(2) development of the agricultural chemical, farm machinery 
and equipment, transportation and other necessary industries 
through private enterprise ; 

(3) training and instructing farmers in agricultural methods 
and techniques ; 

(4) constructing adequate storage facilities ; 

(5) improving marketing and distribution systems; 

(6) creating a favorable environment for private enterprise 
and investment, both domestic and foreign, and utilizing avail- 
able technical know-how ; 

(7) establishing and maintaining Government policies to in- 
sure adequate incentives to producers ; 

(8) establishing and expanding institutions for adaptive agri- 
cultural research ; 

(9) allocating for these purposes sufficient national budgetary 
and foreign exchange resources (including those supplied by bi- 
lateral, multilateral and consortium aid programs) and local cur- 
rency resources (resulting from loans or grants to recipient gov- 
ernments of the proceeds of local currency sales) ; 

(10) ^^ carrying out voluntary programs to control population 
growth. 

In taking these self-help measures into consideration the President 
shall take into particular account the extent to which they are being 
carried out in ways designed to contribute directly to development 
progress in poor rural areas and to enable the poor to participate ac- 
tively in increasing agricultural production through small farm 
agriculture.^^ 

(b) Notwithstanding any other provisions of this Act, in agree- 
ments with nations not engaged in armed conflict against Communist 
forces or against nations with which the United States has no diplo- 
matic relations, not less than 20 per centum of the foreign currencies 
set aside for purposes other than those in sections 104(a), (b), (e), 
and (j) shall be allocated for the self-help measures set forth in this 
section. 

(c) Each agreement entered into under this title shall describe the 
program which the recipient country is undertaking to improve its 
production, storage, and distribution of agricultural commodities ; and 
shall provide for termination of such agreement whenever the Presi- 
dent finds that such program is not being adequately developed. 

Sec. 110.*° Agreements shall not be entered into under this title 
during any calendar year which will call for an appropriation to reim- 
burse the Commodity Credit Corporation in an amount in excess of 
$1,900,000,000, plus any amount by which agreements entered into Un- 
as Section 2(b) of Public Law »0-436 (82 Stat. 450; 7 U.S.C. 1709), struck out the 
word "and" at the end of clause (7) and (8), changed the period at the end of clause (9) 
to a semlcoloa, and added clause (10). 

39 The parafcraph commencing: with "In taking these self-help measures * * ' was added 
by Sec. 206 of Public Law 94-161 (89 Stat. 853). 

« Added by Public Law 89-808 (80 Stat. 1534 ; 7 U.S.C. 1710). 



3C1 



der this title in prior years have called or will call for appropriations 
to reimburse the Commodity Credit Corporation in amounts less than 
authorized for such prior years/^ 

Sec. Ill/- Not more than 25 per centum of the food aid commodities 
provided under this title in each fiscal year shall be allocated and 
agreed to be delivered to countries other than those with an annual 
per capita gross national product of $300 or less and affected by 
inability to secure sufficient food for their immediate requirements 
through their own production or commercial purchase from abroad, 
unless the President certifies to the Congress that the use of such food 
assistance is required for humanitarian food purposes and neither 
House of Congress disapproves such use, by resolution, within thirty 
calendar days after such certification. In determining per capita gross 
national product for the purposes of this section, the President is 
authorized and directed to make use of data developed by the World 
Bank for its most recent annual report and relied upon by the Secre- 
tary of the Treasury. A reduction below 75 per centum in the propor- 
tion of food aid allocated and agreed to be delivered to countries with a 
per capita gross national product of $300 or less and affected by inabil- 
ity to secure sufficient food for their immediate requirements through 
their own production or commercial purchase from abroad which 
results from significantly changed circumstances occurring after the 
initial allocation shall not constitute a violation of the requirements of 
this section. Any reallocation of food aid shall be in accordance with 
this section so far as practicable. The President shall report promptly 
any such reduction, and the reasons therefor, to the Congress. 

TITLE II 

Sec. 201.*^ (a) The President is authorized to determine require- 
ments and furnish agricultural commodities, on behalf of the people 
of the United States of America, to meet famine or other urgent or 
extraordinary relief requirements ; to combat malnutrition, especially 
in children; to promote economic and community development in 
friendly developing areas; and for needy persons and nonprofit school 
lunch and preschool feeding programs outside the United States. The 
Commodity Credit Corporation shall make available to the President 
such agricultural commodities determined to be available under section 
401 as he may request. 

(b)^* The minimum quantity of agricultural commodities distrib- 
uted under this title shall be 1,300,000 tons of which the minimum 
distributed through nonprofit voluntary agencies and the World Food 
Program shall be one million tons in each fiscal year, unless the Presi- 
dent determines and reports to the Congress, together with his reasons, 



*i Amended bv Public Law 84-540 (70 Stat 201) ; Public Law 84-962 (70 Stat. 988) : 
further amended anri restated bv sec. 2(B) of Public Law 80-808 (80 Stat. 1534 : 7 U.S.C. 
1721). Section 2 of Public Law 92-226 (86 Stat. 20). approved February 7. 1972. states: 
"It is the sense of Congress that funds to administer the food-for-pence proprram should not 
be reduced as a result of any reduction in the auuuthorlzations provided to carry out the 
Foreign Assistance Act of 1961.". 

*2 7 U.S.C. 1711. Sec. Ill was added bv Sec. 207 of Public Law 94-161 (89 Stat. 853). 

« Subsection designation "(a)" was added by Sec. 208(1) of Public Law 94-161 (89 
Stat. 853). 

Subsection (b) was added by Sec. 208(2) of Public Law 94-161 (89 Stat. 853^). 



302 



that such quantity cannot be used effectively to carry out the purposes 
of this title : Provided^ That such minimum quantity shall not exceed 
the total quantity of commodities determined to be available for dis- 
position under this Act pursuant to section 401, less the quantity of 
commodities required to meet famine or other urgent or extraordinary 
relief requirements. 

Sec. 202.^^ The President may furnish commodities for the pur- 
poses set forth in section 201 through such friendly governments and 
such agencies, private or public, including intergovernmental organi- 
zations such as the world food program and other multilateral organi- 
zations in such manner and upon such terms and conditions as he deems 
appropriate. The President shall, to the extent practicable, utilize 
nonprofit voluntary agencies registered with, and approved by, the 
Advisory Committee on Voluntary Foreign Aid. Insofar as practi- 
cable, all commodities furnished hereunder shall be clearly identified 
by appropriate marking on each package or container in the language 
of the locality where they are distributed as being furnished by the 
people of the United States of America. The assistance to needy per- 
sons shall insofar as practicable be directed toward community and 
other self-help activities designed to alleviate the causes of the need 
for such assistance. Except in the case of emergency, the President 
shall take reasonable precaution to assure that commodities furnished 
hereunder will not displace or interfere with sales which might other- 
wise be made. 

Sec. 203.*^ The Commodity Credit Corporation may, in addition to 
the cost of acquisition, pay with respect to commodities made available 
under this title costs for packaging, enrichment, preservation, and 
fortification; processing, transportation, handling, and other inci- 
dental costs up to the time of their delivery free on board vessels in 
United States ports ; ocean freight charges from United States ports 
to designated ports of entry abroad, or, in the case of landlocked coun- 
tries, transportation from United States ports to designated points of 
entry abroad; and charges for general average contributions arising 
out of the ocean transport of commodities transferred pursuant 
thereto. 

Sec. 204.^^ Programs of assistance shall not be undertaken under 
this title during any calendar year which call for an appropriation of 
more than $600,00,000 to reimburse the Commodity Credit Corpora- 
tion for all costs incurred in connection with such programs (including 
the Corporation's investment in commodities made available) plus 
any amount by which programs of assistance undertaken under this 
title in the preceding calendar year have called or will call for appro- 
priations to reimburse the Commodity Credit Corporation in amounts 
less than were authorized for such purpose during such preceding year. 
In addition to other funds available for such purposes under any other 



« As amended by Public Law 86-472 (74 Stat. 140) ; Public Law 88-205 (77 Stat 390) ; 
further amended and restated by sec. 2(B) of Public Law 89-808 (80 Stat. 1534). 

^As amended bv Public Law 84-540 (70 Stat. 201) : Public Law 85-128 (Jl Stat. 345) ; 
Public Law 86-341 (73 Stat. 606) : Public Law 86-472 (74 Stat. 140) : Public Law 87-128 
(75 Stat 307) ; Public Law 88-638 (78 Stat. 1037) ; further amended and restated by 
Public Law 89-808 (80 Stat. 1535). _ ^ ^^.^ „^ ^ 

*TAs amended bv Public Law 85-128 (71 Stat. 3455) ; Public Law 85-931 (72 Stat. 
1791) ; Public Law" 86-341 (73 Stat. 606) ; Public Law 87-128 (75 Stat. 30 < ) ; Pu^lc Law 
88-638 (78 Stat. 1037) ; further amended and restated by sec. 2(C) of Public Law 89-8U8 
(80 Stat. 1535; 7 U.S.C. 1724). 



303 



Act, funds made available under this title may be used in an amount 
not exceeding $7,500,000 annually to purchase foreign currencies ac- 
cruing under title I of this Act in order to meet costs (except the per- 
sonnel and administrative costs of cooperating sponsors, distributing 
agencies, and recipient agencies, and the costs of construction or main- 
tenance of any church owned or operated edifice or any other edifices to 
be used for sectarian purposes) designed to assure that commodities 
made available under this title are used to carry out effectively the 
purposes for which such commodities are made available or to promote 
community and other self-help activties designed to alleviate the 
causes of the need for such assistance : Provided^ hoioever^ That such 
funds shall be used only to supplement and not substitute for funds 
normally available for such purposes from other non-United States 
Government sources. 

Sec. 205.*^ It is the sense of the Congress that the President should 
encourage other advanced nations to make increased contributions for 
the purpose of combating world hunger and malnutrition, particularly 
through the expansion of international food and agricultural assist- 
ance programs. It is further the sense of the Congress that as a means 
of achieving this objective, the United States should work for the ex- 
pansion of the United Nations World food program beyond its present 
established goals. 

Sec. 206.^^ Except to meet famine or other urgent or extraordinary 
relief requirements, no assistance under this title shall be provided 
under an agreement permitting generation of foreign currency pro- 
ceeds unless (1) the country receiving the assistance is undertaking 
self-help measures in accordance with section 109 of this Act, (2) 
the specific uses to Avhich the foreign currencies are to be put are set 
forth in a written agreement between the United States and the re- 
cipient country, and (3) such agreement provides that the currencies 
will be used for purposes specified in section 108 of the Foreign Assist- 
ance Act of 1961. The President shall include information on cur- 
rencies used in accordance with this section in the reports required 
under section 408 of this Act and section 657 of the Foreign Assistance 
Act of 1961. 

TITLE III^« 

Sec. 301.^« * * * [Suspended! 
Sec. 302.^'' * * * [Suspended] 



« Added by sec. 2(C) of Public Lrw 89-S08 ifSO Stat. 1535; 7 U.S.C. 1725). 

«7 U.S.C. 1726. Sec. 206 was added bv Sec. 209 of Public Law 94-161 (89 Stat. 854). 

«> Section 2(D) of Public Law 89-808 (80 Stat. 1535). substituted "TITLE HI" for 
"TITLE III— GENERAL PROVISIONS" and struck out sections 304, 305, 306, 307 and 
308. 

This section contained an amendment to section 407 of the Agricultural Act of 1949. 
Since enactment of the Acriculturnl Trade Development and Assistance Act of 1954, 
section 407 has been amended several additional times. The provisions of section 407 as 
thev now exist can be found at 7 U.S.C. 1427. 

This section contained an amendment to section 416 of the Agricultural Act of 1949. 
Since enactment of the Ap:ricultural Trade Development and Assistance Act of 1954. 
section 416 has been amended several additional times. The Food for Peace Act of 1966 
(see paffe 820) deleted from section 416 authority ve^^ted in the Commodity Credit Corpora- 
tion to donate food commodities to non-profit, voluntary agencies recristered with the 
Committee on Voluntary Foreign Aid of the Foreign Operations Administration or 
other appropriate department or agency of the Federal Government and intergovernmental 
organisations for use in the assistance of needy persons and in non-nrofit school lunch 
programs outside the United States. The assistance authorized by this provision is now 
contained in Title II of this Art. (See page 301). The provisions of section 416 as they 
now exist can be found at 7 U.S.C. 1431. 



65-998 O - 76 - 21 



304 



Sec. 303.^^ The Secretary shall, whenever he determines that such 
action is in the best interest of the United States, and to the maximum 
extent practicable, barter or exchange agricultural commodities owned 
by the Commodity Credit Corporation for (a) such strategic or other 
materials of which the United States does not domestically produce its 
requirements and which entail less risk of loss through deterioration 
of substantially less storage charges as the President may designate, or 
(b) materials, goods, or equipment required in connection with foreign 
economic and military aid and assistance programs, or (c) materials 
or equipment required in substantial quantities for offshore construc- 
tion programs. He is hereby directed to use every practicable means, 
in cooperation with other Government agencies, to arrange and make, 
through private channels, such barters or exchanges or to utilize the 
authority conferred on him by section 4(h) of the Commodity Credit 
Corporation Charter Act, as amended,^^ to make such barters or ex- 
changes. In carrying out barters or exchanges authorized by this sec- 
tion, no restrictions shall be placed on the countries of the free world 
into which surplus agricultural commodities may be sold, except to the 
extent that the Secretary shall find necessary in order to take reason- 
able precautions to safeguard usual marketings of the United States 
and to assure that barters or exchanges under this Act will not unduly 
disrupt world prices of agricultural commodities or replace cash sales 
for dollars. The Secretary may permit the domestic processing of 
raw materials of foreign origin. The Secretary shall endeavor to co- 
operate with other exporting countries in preserving normal patterns 
of commercial trade with respect to commodities covered by formal 
multilateral international marketing agreements to which the United 
States is a party. Agencies of the United States Government procur- 
ing such materials, goods, or equipment are hereby directed to coop- 
erate with the Secretary in the disposal of surplus agricultural com- 
modities by means of barter or exchange. The Secretary is also directed 
to assist, through such means as are available to him, farmers' coopera- 
tives in effecting exchange of agricultural commodities in their posses- 
sion for strategic materials. Barter or exchange of agricultural com- 
modities under clause (a) of this section shall be limited to exchange 
for materials which originate in the country to which the surplus agri- 
cultural commodities are exported and to arrangements which will 
prevent resale or transshipment of the agricultural commodities to 
other countries. 



51 U.S.C. § 1692. This section was amended by Sec. 6 of Public Law 85-931, 72 Stat. 
1791. It formerly read as follows : 

"Whenever the Secretary has reason to believe that, In addition to other authorized 
methods and means of disposing of aptrlcultural commodities owned by the Commodity 
Credit Corporation, there may be opportunity to protect the funds and assets of the Com- 
modity Credit Corporation by barter or exchange of such agricultural commodities for (a) 
strategic materials entailing less risk of loss through deterioration or substantially less 
storage charges, or (b) materials, goods or equipment required in connection with foreign 
economic and military aid and assistance programs, or (c) materials or equipment required 
in substantial quantities for offshore construction programs, he is hereby directed to use 
every practicable means, in cooperation with other Government agencies, to arrange and 
make, through private trade channels, such barters or exchangers or to utilize the authority 
conferred on him by section 4(h) of the Commodity Credit Corporation Charter Act, as 
amended, to make such barters or exchanges. Agencies of the United States Government 
nrocnring such materials, goods or equipment are hereby directed to cooperate with the 
Secretary in the disposal of surplus agricultural commodities by means of barter or 
exchange. Strategic materials so acquire by the Commodity Credit Corporation shall be 
considered as assets of the Corporation and other agencies of the government, in purchasing 
strategic materials, shall purchase such materials from Commodity Credit Corporation 
inventories to the extent available in fulfillment of their requirements. The Secretary Is 
also directed to assist, through such means as are available to him. farmers cooperatives In 
effecting exchance of agricultural commodities in their possession for straight materials. 

62 1.5 U.S.C. § 714b. 

»The last sentence was added by Sec. 7 of Public Law 90-436 (82 Stat. 451). 



305 



TITLE IV 

Sec. 401.^* After consulting with other agencies of the Government 
affected and within policies laid down by the President for implement- 
ing this Act, and after taking into account productive capacity, do- 
mestic requirements, farm and consumer price levels, commercial 
exports, and adequate carryover, the Secretary of Agriculture shall de- 
termine the agricultural commodities and quantities thereof avail- 
able for disposition under this Act, and the commodities and quantities 
thereof which may be included in the negotiations with each country. 
No commodity shall be available for disposition under this Act if such 
disposition would reduce the domestic supply of such commodity below 
that needed to meet domestic requirements, adequate carryover, and 
anticipated exports for dollars as determined by the Secretary of Ag- 
riculture at the time of exportation of such commodity.^^ 

Sec. 402.^*^ The term "agricultural commodity" as used in this Act 
shall include any agricultural commodity produced in the United 
States or product thereof produced in the United States: Provided^ 
however. That the term ''agricultural commodity" shall not include 
alcoholic beverages, and for the purposes of title II of this Act, to- 
bacco or products thereof. The foregoing proviso shall not be con- 
strued as prohibiting representatives of the domestic wine industry 
from participating in market development activities carried out with 
foreign currencies made available under title I of this Act which have 
as their purpose the expansion of export sales of United States agri- 
cultural commodities. Subject to the availability of appropriations 
therefor, any domestically produced fishery product may be made 
• available under this Act. 

Sec. 403.^' There are hereby authorized to be appropriated such 
sums as may be necessary to carry out this Act including such amounts 



"As amended by Public Law 86-341 (73 Stat. 610) : Public Law 87-703 (76 Stat. 610) ; 
further amended and restated by sec. 2(E) of Public Law 80-808 i(80 Stat. 1536 ; 7 U.S.C. 

1731) . 

Further, section 39(b) of Public Law 39-189 (87 Stat. 714) provides : 
"(b) It is further the sense of the Congress that — 

"(1) in making assessments which would affect or relate to the level of domestic 
production, the Executive Branch should include in the estimates of overall utilization 
the expected demands for humanitarian food assistance through such programs as are 
carried out under the Agricultural Trade Development and Assistance Act of 1954 
(Public Law 480) ; and 

"(2) legislation providing increased flexibility for responding to emergency and 
humanitarian requirements for food assistance should be considered as promptly as 
possible to the end that the last sentence of section 401 of the Agricultural Trade 
Development -and Assistance Act of 1954 (Public Law 480). may be amended by 
striking the period and inserting in lieu thereof a comma and the following : 'unless 
the Secretary determines that some part of the exportable supply should be used to 
carry out the national interest and humanitarian objectives of this Act.' " 
55 Section 8 of Public Law 85-931, 72 Stat. 1792, as amended by Public Law 89-808, 
80 Stat. 1538, provides as follows : 

"In carrying out the provisions of the Agricultural Trade Develonment and Assistance 
Act of 1954, as amended, extra long staple cotton shall be made available for sale pursuant 
to the provisions of title I of the Act in the same manner as upland cotton or any other 
surplus agricultural commodity is made available, and products manufactured entirely 
from upland or long staple cotton shall be made available for sale pursuant to the provi- 
sions of title I 01 the Act as long as cotton Is In surplus in the same manner as any 
other agricultural commodity or product is made available, and no discriminatory or other 
conditions shall be imno'-ed which will prevent or tend to interfere with their sale or 
availability for sale under the Act." (7 U.S.C. 1701 note) 

50 As amended by Public Law 86-341 (73 Stat. 610) ; Public Law 87-703 (76 Stat. 611) : 
further amended and restated by sec. 2(E) of Public Law 89-808 (80 Stat. 1536 ; 7 U.S.C. 

1732) . The sentence commencing with "the foregoing proviso . . ." was added by Public 
Law 92-42 (85 Stat. 99). 

^As amended by Public Law 86-341 (73 Stat. 610) ; Public Law 87-703 (76 Stat. 611) ; 
Public Law 88-638 (78 Stat. 1037) ; further amended and restated by sec. 2(E) of Public 
Law 89-808 (80 btat. 1536). 



306 



as may be' required to make payments to the Commodity Credit Corpo- 
ration, to the extent the Commodity Credit Corporation is not reim- 
bursed under section 104(j) and 105, for its actual costs incurred or to 
be incurred. In presenting his budget, the President shall classify 
expenditures under this Act as expenditures for international affairs 
and finance rather than for agriculture and agricultural resources. 

Sec. 404.°^ The programs of assistance undertaken pursuant to this 
Act shall be directed toward the attainment of the humanitarian ob- 
jectives and national interest of the United States. 

Sec. 405.°^ The authority and funds provided by this Act shall be 
utilized in a manner that will assist friendly countries that are deter- 
mined to help themselves toward a greater degree of self-reliance in 
providing enough food to meet the needs of their people and in resolv- 
ing their problems relative to population growth. 

Sec. 406.^° (a) In order to further assist friendly developing coun- 
tries to become self-sufficient in food production, the President®^ is 
authorized, notwithstanding any other provision of law — 

(1) To establish and administer ^ program of farmer-to- 
farmer assistance between the United States and such countries 
to help farmers in such countries in the practical aspects of in- 
creasing food production and distribution and improving the 
effectiveness of their farming operations; 

(2) To enter into contracts or other cooperative agreements 
with, or make jrrants to. land-grant collesres and universities and 
other institutions of higher learning in the United States to re- 
cruit persons who by reason of training, education, or practical 
experience are knowledgeable in the practical arts and sciences 
of agriculture and home economics, and to train such persons in 
the practical techniques of transmitting to farmers in such coim- 
tries improved practices in agriculture, and to participate in 
carrying out the program in such countries including, where 
desirable, additional courses for training or retraining in such 
countries ; 

(3) To consult and cooperate with private non-profit farm 
organizations in the exchange of farm youth and farm leaders 
with developing countries and in the traininsf of farmers of such 
developing countries within the United States or abroad; 

(4) To conduct research in tropical and subtropical agriculture 
for the improvement and development of tropical and subtropical 
food products for dissemination and cultivation in friendly 
countries ; 



™As amended by Public Law 86-341 ^73 Stat. 610) : further amended and restated by 
section 2(E) of Public Law 89-808 ^80 Stat. 1536 : 7 U.S.C. 1734). 

59 As amended by Public Law 86-341 (73 Stat. 610) : Public Law 87-703 (76 Stat. 611) : 
further amended and restated by section 2(E) of Public Law 89-808 (80 Stat. 1536; 7 
U.S.C. 1735). 

60 As amended by Public Law 86-341 (73 Stat. 610) : Public Law 87-703 (76 Stat. 
611) : furthe" amended and restated by section 2(E) of Public Law 89-808 (80 Stat. 1536 ; 
7 U.S.C. 1736). 

61 Sec. 214(1) of Public Law 94-161 (89 Stat. 855) substituted the words "the Presi- 
dent" in lieu of "the Secretary of Vprricultnre." 

62 Sec. 214(2) of Public Law 94-161 (89 Stat. 855) struck the words "through existing 
agencies of the Dept of Agriculture" which appeared at this point. 



307 



(5) ^3 To coordinate the program authorized in this section with 
other foreign assistance activities of the United States; 

(6) To establish by such rules and. regulations as he deems 
necessary the conditions for eligibility and retention in and dis- 
missal from the program established in this section, together with 
the terms, length and nature of service, compensation, employee 
status, oaths of office, and security clearances and such persons 
shall be entitled to the benefits and subject to the responsibilities 
applicable to persons serving in the Peace Corps pursuant to the 
provisions of section 612, volume 75 of the Statutes at Large, as 
amended; and 

(7) To the maximum extent practicable, to pay the costs of such 
program through the use of foreign currencies accruing from the 
sale of agricultural commodities under this Act, as provided in 
section 104 (i). 

(b) There are hereby authorized to be appropriated not to exceed 
$33,000,000 during any fiscal year for the purpose of carrying out 
the provisions of this section. 

Sec. 407.*^* There is herebv established an Advisory Committee 
composed of the Secretary of State, the Secretary of the Treasury, the 
Secretary of Agriculture, the Director of the Bureau of the Budget, the 
Administrator of the Agency for International Development, the 
chairman and the ranking minority member of both the House Com- 
mittee on Agriculture and the House Committee on Foreign Affairs, 
and the chairman and the ranking minority member of both the Senate 
Committee on Agriculture and Forestry and the Senate Committee 
on Foreign Relations, or their designees (who shall be members of 
such committees or, in the case of members from the executive branch, 
who shall have been confirmed by the Senate The Advisory Com- 
mittee shall survey the general policies relating to the administration 
of the Act, including the manner of implementing the self-help pro- 
visions, the uses to be made of foreign currencies which accrue in con- 
nection with sales for foreign currencies under title I, the amount 
of currencies to be reserved in sales agreements for loans to private 
industry under section 104(e), rates of exchange, interest rates, and 
the terms under which dollar credit sales are made, and shall advise 



«3Sec. 214(3) of Public Law 94-161 (89 Stat. 855) amended paragraph (5). It 
formerly read as follows: "(5) To coordinate the program authori7ed in this section with 
the activities of the Peace Corps, the Ajrency for International Development, and other 
agencies of the United States and to assijrn. upon agreement with such agencies, .such 
persons to work with and under the administration of such agencies : Provided, That 
nothing in this section shall be construed to infringe upon the powers or functions of the 
Secretary of State" ; 

«*7 TJ.S.r. § 1736a. Section 407 was amended by Sec. 8 of Public Law 90-436. It formerly 
read as follows : 

"Sec. 407. There is hereby established an advisory committee comnosed of the Secre- 
tary of State, the Secretary of the Treasury, the Secref^ry of Agriculture, the Director 
of the Bureau of the Budget, the Administrator of the Agency for International Develon- 
ment, the chairman, the vice chairman and the two ranking minority members of the 
House Committee on Arrriculture and the House Committee on Foreign Affairs, and the 
chairman, the next mnking majority member ?ind the two ranking minoritv member^ of 
the Senate Committee on Agriculture and Forestry and the Senate Committee on For- 
eign Relations. The advisory committee shall survey the general noiicies relating to the 
administration of the Act. including the manner of implementing the splf-heln nrovisions. 
the uses to be made of foreign currencies which accrue in connection with s-^les for foreism 
currencies under title I. the amount o^' currencies to be reserved in sales agreements 
for loans to nrivate industry under section 104 fe). rates of exchange, interest rates, and 
the terms under which dollar credit sales are made, and shall advise the President with 
resnect thereto." 

«5 The phrase commencing with ". or thpir designees (who shall be members * • ♦" was 
added by Sec. 210 of Public Law 94-161 (89 Stat. 854). 



308 



the President with respect thereto. The Advisory Committee shall 
meet not less than four times during each calendar year at the call 
of the Acting Chairman of such Committee who shall preside in the 
following order: The chairman of the House Committee on Agricul- 
ture, the chairman of the Senate Committee on Foreign Relations, the 
chairman of the Senate Conmiittee on Agriculture and Forestry, and 
the chairman of the House Committee on Foreign Affairs. 

Sec. 408.^^ (a) ^' The President shall make a report to Congress not 
later than April 1 each year with respect to the activities carried out 
under this Act during the preceding fiscal ^® year. Such report shall de- 
scribe the progress of each country with which agreements are in 
effect under title I in carrying out its agreements under such title. 

(b) In his presentation to the Congress of planned programing 
of food assistance for each fiscal year, the President shall include a 
global assessment of food production and needs, self-help steps which 
are being taken by food-short countries under section 109(a) of this 
Act, steps which are being taken to encourage other countries to 
increase their participation in food assistance or the financing of food 
assistance, and the relationship between food assistance provided to 
each country under this Act and other foreign assistance provided 
to such country by the United States and other donors. 

(c) Not later than November 1 of each calendar year the President 
shall submit to the House Committee on Agriculture, the House Com- 
mittee on International Relations, the Senate Committee on Agricul- 
ture and Forestiy, and the Senate Committee on Foreign Relations a 
revised global assessment of food production and needs, and revised 
planned programing of food assistance for the current fiscal year, 
to reflect, to the maximum extent feasible, the actual availability of 
commodities for food assistance. 

Sec. 409.'*^ Xo agreement to finance sales under title I and no pro- 
fi^rams of assistance under title II shall be entered into after Decem- 
ber 31, 1977. 

Sec. 410,'^ The provisions of section 620(e) of the Foreign Assist- 
ance Act of 1961, as amended (referring to nationalization, expropria- 
tion, and related governmental Acts affecting property owned by 
United States citizens), shall be applicable to assistance provided 
under title I of this Act. 

Sec. 411." Xo agricultural commodities shall be sold under title I 
or title III or donated under title TI of this Act to North Vietnam, 
unless by an Act of Congress enacted subsequent to July 1, 1973, assist- 
ance to North Vietnam is specifically authorized. 

Sec. 412."^^ The President is authorized and encourasred to seek inter- 
national agreement, subject to congressional approval, for a system of 

« Added bv sec. 2(E) of Public Law 89-808 (80 Stat. 1537: 7 U.S.C. 1736b). 
Subsection designation "(a)" was added by Sec. 211(1) of Public Law 94-161 (89 
Stat. 8o4). 

88 Sec. 211(2) of Public Law 94-161 (89 Stat. 854) substituted the word "fiscal" in 
lieu of "calendar". 

«9 Subsections (b) and (c) were added by Sec. 211(3) of Public Law 94-161 (89 Stat. 
854). 

70 Added by sec. 2(E) of "Public Law 89-808 (80 Stat. 1537: 7 U.S.C. 1736c). Section 1 
of Public Law 90-436 ch-mgred the date to December 31. 1970. Section 701 of Public Law 
91-.n24 (84 S^^at. 1.379). chnnsed the date to December 31. 1973. Section 1(26) of Public 
Law 9.3-86 (87 Stat. 237) chnngred the date to December 31. 1977. 

Added by section 2(E) of Public Law 89-808 (80 Stat. 1538; 7 U.S.C. 1736d). 

72 For text, see nasre 98. 

73 Added bv Public Law 93-86 (87 Stat. 237). 

" 7 U.S.C 1736f. Sec. 412 was added by Sec. 212 of Public Law 94-161 (89 Stat. 855). 



309 



food reserves to meet food shortage emergencies and to provide insur- 
ance against unexpected shortfalls in food production, with costs of 
such a system to be equitably shared among nations and with farmers 
and consumers to be given firm safeguards against market price 
disruption from such a system. 



XoTE.— Section 5 of Public Law 85-128 [S. 1314], 71 Stat. 345, 
approved August 13, 1957, made the following provision for re- 
porting to Congress : 

"(5) Within sixty days after any agreement is entered into 
for the use of any foreign currencies, a full report thereon shall 
be made to the Senate and the House of Representatives of the 
United States and to the Committees on Agriculture and Appro- 
priations thereof." 



Note.— Section 3 of Public Law 84-962 [S. 3903], 70 Stat. 988, 
approved August 3, 1956, provides : 

"Sales of fresh fruit and the products thereof under title I 
of the Act shall be exempt from the requirements of the cargo 
preference laws (Public Resolution 17. Seventy-third Congress 
(15 U.S.C. 616a) and section 901 (b) of the Merchant Marine Act, 
1936 (46 U.S.C. 1241 (b)))." 



Note.— Section 709 of Public Law 89-321 [H.R. 9811] (Food 
and Agriculture Act of 1965) , 79 Stat. 1212, approved November 
3, 1965, provides: 

"The Secretary of Agriculture is hereby authorized to use 
funds of the Commodity Credit Corporation to purchase suffi- 
cient supplies of dairy products at market prices to meet the 
requirements of any programs for the schools (other than fluid 
milk in the case of schools), domestic relief distribution, com- 
munity action.'^^ and such other programs as are authorized by 
law, when there are insufficient stocks of dairy products in the 
hands of Commodit}^ Credit Corporation available for these 
purposes." 



Note. — Section 407 of the Agricultural Act of 1949, as amended 
November 3, 1965, by Public Law 89-321, 79 Stat. 1197; Novem- 
ber 11, 1966, by Public Law 89-808, 80 Stat. 1538; August 11, 
1968, by Public Law 90-475, 82 Stat. 703: October 11, 1968, by 
Public Law 90-559, 82 Stat. 996, and November 30. 1970, by Public 
Law 91-524, 84 Stat. 1367, and found at 7 U.S.C. 1427, provides 
the minimum prices the Commodity Credit Corporation may sell 
farm commodities owned or controlled by it. 



The words "foreign distribution" which appeared at this point were struck out by 
section 3(B) of the Food for Peace Act of 1966, effective January 1, 1967. 



b. Extension of Agricultural Trade Development and Assistance 
Act of 1954, as amended 

Partial text of Public Law 85- 931 [S. 3420], 72 Stat. 1790, approved September 6, 
1958, as amended by P.L. 87-703 [H.R. 12391], 76 Stat. 605 at 611, approved 
September 27, 1962, and P.L. 89-808 [H.R. 14929], 80 Stat. 1526 at 1538, 
approved November 11, 1966 

AN ACT To extend and amend the Agricultural Trade Development and 
Assistance Act of 1954. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress a^sembled^ * * * 

si* SfC sic SfC 3fC «)S 9{S 



Note. — Except for Sections 7, 8, and 9, reprinted below, tlie 
wliole of Public Law 85-931 consists of amendments to the Agri- 
cultural Trade Development and Assistance Act of 1954, as 
amended (see page 284). 



Sec. 7.^ Section 206(a) of the Agricultural Act of 1956 is amended 
by inserting before the period at the end thereof a semicolon and the 
following: "but no strategic or critical material shall be acquired 
by the Commodity Credit Corporation as a result of such barter or ex- 
change except for such national stockpile, for such supplemental stock- 
pile, for foreign economic or military aid or assistance programs, or 
for offshore construction programs". 

Sec. 8.2 In carrying out the provisions of the Agricultural Trade 
Development and Assistance Act of 1954, as amended, extra long 
staple cotton shall be made available for sale pursuant to the provi- 
sions of title I of the Act in the same manner as upland cotton or any 
other surplus agricultural commodity is made available, and producte 
manufactured entirely ^ from upland or long staple cotton shall be 
made available for sale pursuant to the provisions of title I of the Act 
as long as cotton is in surplus supply in the same manner as any other 
agricultural commodity or product is made available,^ and no dis- 
criminatory or other conditions shall be imposed which will prevent 
or tend to interfere with their sale or availability for sale under the 
Act.* 



17 U.S.C. 1856. 

«7 TT.S.C. 1601 note. 

'The word "entirely" and the words "in the same manner as any other agricultural 

commodity or product is made available" were added by Sec. 3(d) of Public Law 89-808 
(Food for Ppaoe y\et of 1966). (Sep p. 820.) 

*■ Sec. 3(d) of Public Law 89-808 inserted a period in lieu of the colon and strucli out the 
proviso, which read as follows : "Provided, That that portion of sales price of such 
products which is financed as a sale for foreign currencv under title T of the Act shall be 
limited to the estimated portion of the sales price of such products attributable to the raw 
cotton content of such products" (see p. 320). 

(310) 



311 



Sec. 9.^ Notwithstanding any other provision of law those areas 
under the jurisdiction or administration of the United States are 
authorized to receive from the Department of Agriculture for distribu- 
tion on the same basis as domestic distribution in any State, Territory, 
or possession of the United States, without exchange of funds, such 
surplus commodities as may be available pursuant to clause (2) of 
section 32 of the Act of August 24, 1935, as amended (7 U.S.C. 612c), 
and section 416 of the Agricultural Act of 1949, as amended (7 U.S.C. 
1431 



6 7 U.S.C. 1431b. 

6 Sec. 3(a) of Public Law 89-808 (see p. 320) ; struck out the symbol "(1)" after the 
word "law" ; inserted a period in lieu of the semicolon, and struck out the language after 
the semicolon, which read as follows: "and (2) the Commodity Credit Corporation is 
authorized to purchase products of oil seeds, and edible oils and fats and the products 
thereof in such form as may be needed for donation abroad as provided in the following 
sentence. Any such commodities or products if purchased shall be donated to nonprofit 
voluntary agencies registered with the Department of State, other appropriate agencies of 
the Federal Government or international organizations for use in the assistance of needy 
persons and in nonprofit school lunch programs outside the United States. Commodity 
Credit Corporation may incur such additional costs with respect to such oil as it is 
authorized to incur with respect to food commodities disposed of under section 416 of the 
Agricultural Act of 1949." The words "and in nonprofit school lunch programs" were 
added by Sec. 204 of Public Law 87-703 (76 Stat. 611). 



c. Agricultural Trade Development and Assistance Act 
Appropriations, 1975 

Partial text of Public Law 93-563 [H.R. 16901], 88 Stat. 1822 at 1828, approved 

December 31, 1974 

tti ***** 

PUBLIC LAW 480 

For expenses during the current fiscal year, not otherwise recover- 
able, and unrecovered prior years' costs, including interest thereon, 
under the Agricultural Trade Development and Assistance Act of 
1954, as amended (7 U.S.C. 1701-1710, 1721-1725, I731-l736d), to 
remain available imtil expended, as follows: (1) sale of agricultural 
commodities for foreign currencies and for dollars on credit terms 
pursuant to title I of said Act, $425,175,000 : Provided^ That no more 
than 10 percent of such amount shall be made available to any one 
country ; and (2) commodities supplied in connection with dispositions 
abroad, pursuant to title II of said Act, $353,298,000. 

******* 



(312) 



d. Agriculture and Related Agencies Appropriation Act, 1976 

Partial text of Public Law 94-122 [H.R. 8561], 89 Stat. 641, approved Oct. 21, 1975 

AN ACT Making appropriations for Agriculture and Related Agencies programs 
for the fiscal year ending June 30, 1976, and the period ending September 30, 
1976, and for other purix)ses. 

Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That the following 
sums are appropriated, out of any money in the Treasury not otherwise 
appropriated, for Agriculture and Related Agencies programs for the 
fiscal year ending June 30, 1976, and the period ending September 30, 
1976, and for other purposes ; namely : 

TITLE IV— INTERNATIONAL PROGRAMS 

FOREIGN AGRICULTURAL SERVICE 

For necessary expenses for the Foreign Agricultural Service, includ- 
ing carrying out title VI of the Agricultural Act of 1954 (7 U.S.C. 
1761-1768), market development activities abroad, and for enabling 
the Secretary to coordinate and integrate activities of the Department 
in connection with foreign agricultural work, including not to exceed 
$45,000 for representation allowances and for expenses pursuant to 
section 8 of the Act approved August 3, 1956 (7 U.S.C. 1766), 
$37,071,000 : Provided, That not less than $255,000 of the funds con- 
tained in this appropriation shall be available to obtain statistics and 
related facts on foreign production and full and complete information 
on methods used by other countries to move farm commodities in world 
trade on a competitive basis. 

For the "Foreign Agricultural Service" for the period July 1, 1976, 
through September 30, 1976, including carrying out title VI of the 
Agricultural Act of 1954 (7 U.S.C. 1761-1768), market development 
activities abroad, and for enabling the Secretary to coordinate and 
integrate activities of the Department in connection with foreign agri- 
cultural work, including not to exceed $12,000 for representation 
allowances and for expenses pursuant to section 8 of the Act approved 
August 3, 1956 (7 U.S.C. 1766), $9,283,000: Provided, That not less 
than $63,750 of the funds contained in this appropriation shall be 
available to obtain statistics and related facts on foreign production 
and full and complete information on methods used by other countries 
to move farm commodities in world trade on a competitive basis. 

PUBLIC LAW 48 

For expenses during the current fiscal year, not otherwise recover- 
able, and unrecovered prior years' costs, including interest thereon, 

(318) 



314 



under the. Agricultural Trade Development and Assistance Act of 
1954, as amended (7 U.S.C. 1701-1710, 1721-1725, 1731-1736d), as 
follows: (1) sale of agricultural commodities for foreign currencies 
and for dollars on credit terms pursuant to title I of said Act, 
$449,466,000 and (2) commodities supplied in connection with dispo- 
sitions abroad, pursuant to title II of said Act, $640,451,000. 

For "Public Law 480" for the period July 1, 1976, through Sep- 
tember 30, 1976, as follows: (1) sale of agricultural commodities for 
foreign currencies and for dollars on credit terms pursuant to title I 
of said Act, $56,045,000; and (2) commodities supplied in connection 
with dispositions abroad, pursuant to title II of said Act, $90,175,000. 
* * * * * * * 



e. Executive Order 10900, as amended 



Executive Order 10900, January 5, 1961, 26 F.R. 143, 3 CFR, 1959-1963 Comp., 
p. 429, as amended by Executive Order 10915, January 24, 1961, 28 F.R. 781, 
3 CFR, 1959-1963 Comp., p. 444, Executive Order 10972, November 3, 1961, 
26 F.R. 10469, 3 CFR 1959-1963 Comp., p. 492, Executive Order 11036, July 
11, 1962, 27 F.R. 6653, 3 CFR, 1959-1963 Comp., p. 620, Executive Order 
11051, September 27, 1962, 27 F.R. 9683, 3 CFR, 1959-1963 Comp., p. 635 and 
Executive Order 11725, June 27, 1973, 38 F.R. 17175 

Administration of the Agricultueal Trade Development and 
Assistance Ac?r or 1954, as Amended 

By virtue of the authority vested in me by section 301 of title 3 of the 
United States Code, and as President of the United States, it is ordered 
as follows : 

Section 1. Department of Agriculture. — (a) Except as otherwise 
provided in this order, the functions conferred upon the President by 
Titles I ^ and IV - of tlie Aofi'icultiiral Trade Development and Assist- 
ance Act of 1954 (7 U.S.C. 1691-1694; 1731-1736) are hereby dele- 
gated to the Secretary of Agriculture. 

(b) The Administration on behalf of the United States of the credit 
provisions of agreements entered into pursuant to Title IV of the Act 
^including the receiving of payments under agreements) shall be per- 
formed by such Federal agency or agencies as shall hereafter be desig- 
nated therefor by the President. 

(c) The Department of Agriculture shall transmit to the Senate and 
House of Representatives of the United States and to the Committees 
on Agriculture and Appropriations thereof the reports required by the 
provisions of paragraph (5) of the act of August 13, 1957, 71 Stat. 345 
(7 U.S.C. 1704a). ' ' ' S ' . 

Sec. 2. Department of State. — Administration of Title 11. The 
functions conferred upon the President by Title II ^ of the Act (7 
U.S.C. 1701-1709) are hereby delegated to the Secretary of State. 

Sec. 3. Department of State — Other Functions, (a) The func- 
tions of negotiating and entering into agreements with friendly na- 
tions or organizations of friendly nations conferred upon the Presi- 
dent by the Act are hereby delegated to the Secretary of State. 

(b) All functions under the Act, however vested, delegated or as- 
signed shall be subject to the responsibilities of the Secretary of State 



1 For text, see pape 287. 

2 The Food for Peace Act of 1966 (Public Law 89-808. 80 Stat. 1526) incorporated the 
provisions of Title IV of the Agricultural Trade Development & Assistance Act of 1954 
(Public Law 480) into Title I and a new Title IV providing for general and miscellaneous 
provisions was enacted. 

3 For text, see page 301. 

(315) 



316 



with respect to the foreign policy of the United States as such policy 
relates to such functions. 

(c) The provisions of Part II of Executive Order No. 10893 of 
November 8, 1960, are hereby extended and made applicable to the 
functions provided for in the Act and to United States agencies and 
personnel concerned with the administration abroad of such functions. 

Sec. 4. Foreign Currencies. — (a)(1)* Foreign currencies which 
accrue under title I ^ of the Act may be used for the purposes set 
forth in Section 104 of the Act in amounts consonant with applicable 
provision of law and sales agreements and loan agreements. Ex- 
cept as may be inconsistent with such law or agreements, priority shall 
be accorded to the sale of such currencies to appropriations or to their 
sale otherwise for dollars. To such extent as he may deem necessary, 
the Director of the Bureau of the Budget shall fix the amounts of such 
currencies to be used for the purposes set forth in Section 104. The 
Director shall notify the Secretary of the Treasury with respect to 
any amounts so fixed. 

(2) The function conferred upon the President by the penultimate 
proviso of Section 104 of the Act of waiving the applicability of Sec- 
tion 1415 of the Supplemental Appropriation Act, 1953 (31 U.S.C. 
724),^ is hereby delegated to the Secretary of State in respect of Sec- 
tion 104(e) of the Act and to the Director of the Bureau of the Budget 
in all other respects. 

(b) The Secretary of the Treasury is hereby authorized to prescribe 
regulations governing the purchase, custody, deposit, transfer, and 
sale of foreign currencies received under the Act. 

(c) The foregoing provisions of this section shall not be deemed to 
limit section 3 of this order, and the provisions of subsection (b) of 
this section shall not be deemed to limit subsection (a) thereof. 

(d) The purposes described in the lettered paragraphs of section 
104 of the Act (7 U.S.C. 1704) shall be carried out, with foreign cur- 
rencies made available in consonance with law and the provisions of 
this order, as follows : 

(1) Those under section 104(a) of the Act by the Department 
of Agriculture. 



4 Executive Order 11036 substituted new language for Section 4(a), which formerly 
read as follows : 

"Sec. 4. Foreign Currencies, (a)(1) The amounts of foreign currencies which accrue 
under Title I of the Act to be used for the loans described in section 104(g) of the Act, 
and the amounts of such currencies to be used for loans b.v the Export-Import Bank pur- 
suant to section 4(d) (5) of this order, shall be the amounts thereof specified or shall be 
the amounts thereof corresponding to the dollar amounts specified, for such loans in sales 
agreements entered into pursuant to section 3(a) of this order. The Department of State 
may allocate or transfer to the Development Loan Fund foreign currencies to be used for 
loans made by the latter under section 104(g) of the Act in pursuance of section 4(d) 
(7)(i) hereof. 

"(2) Except as otherwise provided in section 4(a)(1) hereof and except as otherwise 
required by law (74 Stat. 233; 238; section 104(h) of the Act), and, if applicable, within 
the amounts purchasable with the several appropriations, the Director of the Bureau of 
the Budget shall from time to time fix amounts of foreign currencies which accrue under 
Title I of the Act to be used for the purposes described in the respective lettered para- 
graphs of section 104 of the Act. To the extent necessary, the Director of the Bureau of 
the Budget shall allocate among the Government agencies concerned the amounts of foreign 
currencies so fixed. 

"(3) the function conferred upon the President by the penultimate proviso of section 104 
of the Act of waiving the applicability of section 1415 of the Supplemental Appropriation 
Act, 1953 (31 U.S.C. 724), is hereby delegated to the Director of the Bureau of the Budget." 

5 For text, see page 286. 
«For text, see page 219. 



317 



(2) ^ Those under section 104(b) of the Act by the Office of 
Emergency Planning. The function conferred upon the Presi- 
dent by that section of determining, from time to time, materials 
to be contracted for or to be purchased for a supplemental stock- 
pile is hereby delegated to the Director of the Office of Emergency 
Planning.^ 

(3) Those under section 104(c) of the Act by the Department 
of Defense or the Department of State, as those agencies shall 
agree, or in the absence of agreement, as the Director of the 
Bureau of the Budget shall determine. 

(4) Those under sections 104(d) and 104(e) of the Act by the 
Department of State.^ 

(5) ^° Those under Section 104(s) of the Act by the Department 
of the Treasury in consultation with the Department of State. 
The function conferred upon the President by section 104 (s) of 
the Act of prescribing terms and conditions is hereby delegated to 
the Secretary of the Treasury and shall be performed by him in 
consultation with the Secretary of State. 

(6) Those under section 104(f) of the Act by the respective 
agencies of the Government having authority to pay United States 
obligations abroad. 

(7) " Those under section 104(g) of the Act by the Depart- 
ment of State. The function conferred upon the President by 
section 104(g) of the Act of determining the manner in which the 
loans provided for in that section shall be made is hereby delegated 
to the Secretary of State. 

(8) Those under sections 104(h), 104(o), 104(p), and 104(q) 
of the Act by the Department of State. 



''Sec. 408 of E.O. 11051. relating to Supplemental stockpile, provides: "The Director, 
under authority of the provisions of Sec. 4(d)(2) of Executive Order No. 10900 of Jan- 
uary 6, 1961, shall determine from time to time the materials to be contracted for or 
purchased for a stipplemental stockpile with foreign currencies pursuant to the Agricul- 
tural Trade Development and Assistance Act of 1954 (7 U.S.C. 1704(b))." 

Sec. 001 of E.O. 11051 substitutec^ the words "Office of Emergency Planning" and 
"Director of the Office of Emergency Planning" for "Office of Civil and Defense Mobiliza- 
tion" and "Director of the Office of Civil ana Defense Mobilization", respectively. 

8 Executive Order 11725. June 27, 1973, 8S F.R. 17175, transferred the authority to the 
Administrator of General Services, as provided by section 3 which reads as follows : 

"Sec. 3. All authority vested in the Director of the Office of Emergency Preparedness as 
of June 30. 1973, by Executive order, proclamation, or other directive issued by or on 
behalf of the President or otherwise, other than that specified in section 1 (relating to 
disaster relief), and section 2 (relating to import investigations) of this order, is hereby 
transferred to the Administrator of General Services who shall exercise sucli authority in 
conformance with such guidance as may be provided by the National Security Council and, 
with respect to the economic and disposal aspects of stockpiling of strategic and critical 
materials by the Council on Economic Policy. Those functions include, but are not limited 
to functions under — " 

''The words ", except to the extent that section 104(e) pertains to the loans referred 
to in subsection (d)(5) of this section" which appeared at this point were deleted by 
E.O. 10972. 

10 Paragraph (5) was added by E.O. 11036. Former paragraph 5, which was deleted by 
E.O. 10972, read as follows: "Those under section 104(e) of the Act by the Export- 
Import Bank of Washington to the extent that section 104(e) pertains to loans governed by 
that portion )f such section added by the Act of August 13, 1957, 71 Stat. 345." 

^Executive Order 11036 substituted new language for subsection 4(d)(7), which 
formerly read as follows : 

"(7) (1) Those under section 104(g) of the Act by the Department of State and by The 
Development Loan Fund, as they shall agree, (ii) The function conferred upon the 
President by section 104(g) of the Act of determining the manner in which the loans 
provided for in section 104(g) shall be made is hereby delegated to the Secretary of State 
with respect to loans made by the Department of State pursuant to the assignment of 
purposes effected under item (i) of this paragraph, and to the Develooment Loan Fund 
with respect to loans made by the Development Loan Fund pursuant to such assignment 
of purposes, (iii) As used herein, the term 'Development Loan Fund' means the Managing 
Director of the Development Loan Fund, acting sub.iect to the immediate supervision and 
direction of the board of directors of the Develonment Lonn Fund : but, notwitbstanditic 
the foregoing, the Development Loan Fund, with respect to this order, shall be subject 
to the supervision and direction of the Secretary of State. 



318 



(9) , Those under sections 104 (i) and 104 (m) of the Act by the 
United States Information Agency. 

(10) Those under section 104(j) of the Act by the Department 
of State and by the United States Information Agency in accord- 
ance with the division of responsibilities for the administration of 
the United States Information and Educational Exchange Act of 
1948 (62 Stat. 6) provided by Reorganization Plan No. 8 of 1953 
(67 Stat. 642) and Executive Order No. 10477 of August 1, 1953, 
and by subsequent agreement between the Department of State 
and the United States Information Agency. 

(11) Those under section 104(k) of the Act as follows: (i) 
Those with respect to collecting, collating, translating, abstract- 
ing, and disseminating scientific and technological information by 
the Director of the National Science Foundation and such other 
agency or agencies as the Director of the Bureau of the Budget, 
after appropriate consultation, may designate, (ii) Those with 
respect to programs of cultural and educational development, 
health, nutrition, and sanitation by the Department of State, 
(iii) All others by such agency or agencies as the Director of 
the Bureau of the Budget, after appropriate consultation, may 
designate. As used in this paragraph the term "appropriate 
consultation" shall include consultation with the Secretary of 
State, the Director of the National Science Foundation, and any 
other appropriate Federal agency. 

(12) Those under section 104(1) of the Act by the Department 
of State and by any other agency or agencies designated therefor 
by the Secretary of State. 

(13) Those under section 104 (n) of the Act by the Librarian of 
Congress. 

(14) Those under section 104 (r) of the Act by the Department 
of State and by the United States Information Agency, as they 
shall agree. 

(e) In negotiating international agreements in pursuance of the 
Act, the Secretary of State shall endeavor to avoid restrictions which 
would limit the application of normal budgetary and appropriation 
controls to the use of those foreign currencies accruing under Title 
I of the Act which are to be available for operations of United States 
Government agencies. 

Sec. 5. Reservation of Fuxctions to the President. There are 
hereby reserved to the President the functions conferred upon him by 
section 108 of the Act (including that section as affected by section 
406 of the Act) with respect to making reports to Congress. 

Sec. 6.^^ Director of the Food-for-Peace Progra3i. Subject to the 
direction of the President, the Director of the Food-for-Peace Program 
(provided for in a letter of the President bearing the same date as 
this order) shall be responsible for the continuous supervision and 
coordination of the functions hereinabove delegated or otherwise as- 
signed to officers or agencies of the Government. The foregoing pro- 
visions of this section shall not be construed as terminating any 
delegation or other assignment of function made by other sections 
of this order. 



319 



Sec. 7.^- Defixition; Referexces. (a) As used in this order, the 
term "Act" and the term "Agricultural Trade Development and As- 
sistance Act of 1954"" mean the Agricultural Trade Development and 
Assistance Act of 1954 (68 Stat. 454) as amended from time to time, 
and include, except as may be inappropriate, provisions thereof 
amending other laws. 

(b) References in any prior order not superseded by this order to 
any provisions of any Executive order superseded by this order shall 
hereafter be deemed to be references to the corresponding provisions, 
if any, of this order. 

(c) References in this order or in any other Executive order to this 
order or any provision of this order shall be deemed to include refer- 
ences thereto, respectively, as amended from time to time. 

Sec. 8.^- Svpersedixg axd Savixg Provisioxs. (a) To the extent not 
heretofore superseded, the following-described orders and parts of 
orders are hereby superseded : 

(1) Executive Order No. 10560 of September 9, 1954. 

(2) Executive Order No. 10685 of October 27, 1956. 

(3) Executive Order No. 10708 of May 6, 1957. 

(4) Executive Order No. 10746 of December 12, 1957. 

(5) Sections 1 and 2 of Executive Order No. 10799 of January 
15 1959. 

(6) Executive Order No. 10827 of June 25, 1959. 

(7) Executive Order No. 10884 of August 17, 1960. 

(8) Without prejudice to section 3(c) of this order, the text 
enclosed in parent